Olin Corporation · NYSE:OLN
Olin — Dahlman Rose Global Metals, Mining & Materials Conference 2012
25 slides from Olin's conference presentation, Nov 9, 2012
Slide 1: Dahlman Rose Global Metals, Mining & Materials Conference
Exhibit 99.1 ExhibitMetals, Dahlman Global November 99.1 Rose 13, 2012 & Mining Company & Materials Conference
Slide 2: Company Overview
Company Olin Chlor Chemical Soda A Winchester Q3 All 2011 Olin, Leading 2012 12 financial Corporation results August and Alkali 9Mo9Mo Midwest Distribution Overview Distributor North 12 include data 22, 2012 FY 2012 American are 2011 Bleach FY afor pretax of through 2011 Revenue: the Caustic Produce
Slide 3: Investment Rationale
•Investment Winchester’s Leading K.A. Significant Strong Opportunity 344thSteel consecutive balance North producer Rationale Chemicals cost toleading American generate sheet reduction of quarterly industrial burner industry Inc. +$400 producer program (KA grade dividend position bleach million Steel
Slide 4: Improving EBITDA Opportunity
Improving •Olin Winchester Since Olin Downstream Centerfire FY Opportunity Adjusted 2012 has 2000, completed EBITDA EBITDA relocation post net for EBITDA bleach North FY surge has the 2013 and toAmerican profits potential immediately MS HCl EBITDA will growth areto increase chlor greater be toaccret
Slide 5: Chlor Alkali Products and Positions
Chlor=Alkali North (Potassium Caustic Bleach (Sodium Chlorine Industrial (Hydrochloric Hydrogen ECU Percent #1 Electrochemical Soda Hydroxide) Hypochlorite) –Gas—.03 10% 1Hydroxide) Process Ton –American Acid) 1.13 #1 Tons 26% Burner Unit; ofMerchant 50% Grade 2011 a#3 unit 1% Position HCl of measur
Slide 6: North American Chlor Alkali Producers & Technologies
North The Note: American data presented Chlor Alkali is asProducers of 12/31/12 & and Technologies does not reflect the potential PPG/GGC combination of chlor-alkali capacity.
Slide 7: Mercury Cell Conversion
Mercury •2012 The This In Q3 Capital the conversion 2 second 2012, year Transition expenditures project the half of Charleston, of 200,000 right 2012, to complete sized Olin ECUs TNour caustic discontinued the from capacity 2 year mercury cellin effort room thetouse region; was are membrane of appro
Slide 8: Diverse North American Chlorine Customer Base
Diverse North Chlorine Source: Chlorine: Caustic American Soda Soda: CMAI Customer “Organics” “Organics” and Industry Base Olin includes: 2011 Olin includes: demand. Corporation Propylene MDI, Includes TDI, oxide,polycarbonates, sales epichlorohydrin, of SunBelt. synthetic MDI, TDI, glycerin, polyca
Slide 9: Olin's Geographic Advantage
Olin’s 12/31/12 McIntosh, 297 65 Charleston, Total Membrane Access Membrane Diaphragm 2,047 Geographic toChlorine regional AL AL—SunBelt 57.2% TN426 Niagara 208 Becancour, Diaphragm Advantage Location Diaphragm customers Membrane Falls, 352Quebec Capacity NY Membrane including 42.8% St.300 Gabriel,
Slide 10: Bleach Initiative
•Industrial facilities 3Olin Bleach Demand Regional Q3 new 2012 isHyPure® the utilizes commands Bleach is bleach nature leading seasonal, both Initiative shipments of Bleach aNorth the chlorine premium but bleach investments not American ofcyclical and 50,000 business price caustic bleach over will
Slide 11: Olin Bleach Key Objective
•Bleach Olin bleach Key Current Increased Reduced Larger Proprietary Potential bleach Growth shipping capacity transportation new stability Olin target volume category is radius aadvantages tosegments Key and convert delivers shelf Objective of costs consumer 14.5% include life steadyofgrowth water
Slide 12: Hydrochloric Acid Demand
•Hydrochloric HCl demand Demand By-product Currently Burner Olin currently grade for 25%HCl Acid HCl has HCl has ofaccounts strengthened, isHCl is the currently a ability reliable supply for higher to 75% issource, primarily convert “Burner-grade” ofthan the and 8% due supply market while oftoour it
Slide 13: Growing North American Burner Grade HCl Demand
Growing •North Burner 75% By-product Olin Oil U.S. Diverse &American is steel ofGas ideally acid HCl demand industry demand HCl is is Demand the positioned supplied HCl availability segments only demand has Supply Demand growing increased bytofollow Gulf has serve is less been HCl by-product GDP the
Slide 14: Chlor-Alkali Outlook
Chlor-Alkali •operational (1) A We Q3Q3 In HClQ3 2012 expect demand 2012 2012 ECU ECU operating in some record Outlook we netback Q1 remains netbacks(1) successfully 2013 portion level rate =robust Price of 50,000 of83% of the of started with $560 1Q3 ECU increased ton long-term 2012 are up of volum
Slide 15: KA Steel Acquisition
KA •year 10-year The KASteel On 20113August Steel combination Section transaction KAnotes Acquisition Steel is22, one 338(h)(10) and2012, sales was of cash ofthe Olin financed were we on largest tax acquired hand and $435 election KA through distributors million Steel privately provides the is and e
Slide 16: Complementary Assets and Footprint
Complementary Significantly •– KA Combined Complementary Enhanced Steel’sprovides Steel operational caustic caustic expands Assets manufacturing distribution distribution scale our Footprint and and distribution geographical access network infrastructure assets tonetwork new and isplatform capable d
Slide 17: Compelling Bleach Opportunity
Compelling •Optimization – Olin’s KA Additional 340-million 75-million Steel’s Bleach Bleach Bleach gallons 100-million of gallons Capacity bleach Opportunity Capacity distribution gallons bynetwork late 2012provides with HyPure® significant Bleach growth plant opportunities additions
Slide 18: KA Steel Platform Optimizes Synergies
•KA Platform Optimizes Provides Expands Increases Significant Expected Steel Synergies presence to platform stability touse synergy expand beof immediately KA in of toOlin potential core reduce Steel’s sales caustic Chlor-Alkali freight accretive existing ofof$7 industrial soda to and freight $15 to
Slide 19: Winchester Strategy
Hunters Mass Products Rifle Winchester •– Cost New Provide Centerfire Once Meaningful Continue Maintain N/A Law Reduction Product complete, &Retail returns Handgun Recreational reputation to Strategy relocation savings develop Development Distributors inweexcess N/A expect as expected new Shooters a
Slide 20: Strong Correlations Between Firearms and Ammunition Data
Strong •Data 1Reflect 2Estimated reported NICS U.S. Correlations Commercial Correlation Checks on thebased Bureau FBI’s & on U.S. National Between Ammunition ofNSSF Alcohol, Firearms Trade Instant Firearm Tobacco, Mfr. Production: Statistics Criminal and Shipments Ammunition Firearms Program backgro
Slide 21: Winchester Outlook
•Winchester 21 YTD We Commercial During In Seasonally Q3 expect 2012 2012, Q4Outlook meaningful Second 2012, strong weaker we sales received we Q3 were Source Q4expect 2012 2012 savings strong ancontract earnings additional cost earnings in from savings Q3awards the of 2012, expected 2nd $16 Oxford,
Slide 22: Centerfire Relocation
•Centerfire 22 Annual The In addition Q3decision controlled new net 2012, operating project 500,000 Relocation tothe to $31 relocation cost relocate cost costs square million issavings estimated are Winchester’s foot process ofexpected grants exceeded facility toisbe from on towas centerfire $80 the
Slide 23: Strong Balance Sheet
•Strong The $312 $211 Includes No 2012 complete material 9/30/12 repayment Olin million CAPEX Balance proceeds pension thedebt cash of mercury for forecast Sheet of capital the maturities balance plans $7.7 from acquisition conversion to million spending remain issuance be ofuntil in $122 $240-$250
Slide 24: Q4 2012 Outlook
•Profit With Q4 2012 Bleach HCl KA Q3 Steel pricing Outlook Q3sales the successful 2012 Winchester operating earnings and continue adjusted volumes and rates completion commercial their synergy EBIDTA are remain year-over-year projected contributions and of strong volumes $81.3 on-going toas bemilli
Slide 25: Forward-Looking Statements
Forward-Looking This Some 2012 presentation Form of the10-Q. factors contains These Statements that could reports estimates cause are filed of actual future with results performance, the U.S. to differ Securities are which described and areExchange forward-looking in the business Commission. stateme
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