Slide 1: LSB Industries, Inc. Small-Cap Equity Conference
Exhibit 99.1 LSB Industries, NYSE: Small- March 16, Cap LXU2015 Equity Inc.Conference
Slide 2: Safe Harbor Statement
Safeterm Statements including ammonia economic planned LEAN You incorporate contain information The financial meet 1operations presentation. information forward-looking should Harbor our impact; acapital performance debt EBITDA, discussion costs, but recovery; or that not the contained Statement oth
Slide 3: Why LSB?
125432 Why Operates LSB?business well-diversified Executing segments on Well-positioned Implementing Strong Focusedfinancial on strategic business in end plan with andmarkets operating position creating and to differentiated drive with capital delivering growthmarket attractive improvement value and
Slide 4: Company overview
Company 3LSB operates overview a well-diversified business with differentiated market positions across two distinct business segments
Slide 5: Business overview
Business Diversified HVAC Founded Cherokee Pryor El Oklahoma Financial 2014 Net Engineering EBITDA 36% 2% Note: 24% Control Climate LSB 76% 62% Chemical (1)Dorado sales operates net EBITDA Excludes Chemical products Control Includes sales in overview by snapshot: Nitrogen business Chemical Nitric Ci
Slide 6: Chemical Business overview and sales mix
One Business Sales Provides Leading Major Positioned Mining Industrial 15% Natural 35% Agricultural 3% A 47% 2014 Select Cost-plus Spot Cost 51% Approximately 549% keyof market plus sales: mix strategy customers investments LSB’s products gas merchant nitrogen overview acids agreements to $455 produ
Slide 7: Climate Control Business overview and sales mix
Oneproduct Business Sales Provides By renovation Market Poised Hydronic 13% products Heat 23% 1% Industrial 15% Other 64% 7% Single 19% Education 11% Lodging 9% Retail 6% Significant Multi-Family 16% Residential 2014 World Millennium MGM Statue 6Trump Office Healthcare of pumps sales: mix HVAC Finan
Slide 8: Market overview
Market 7LSB is well-positioned overview in end markets with attractive industry fundamentals
Slide 9: Chemical Business products, uses and competitors
Chemical Urea Agro- Competitors Uses Fertilizer (47% Chemicals high Primary fertilizer Industrial & (35% Nitric Sulfuric Ammonia Diesel emissions Cytec, Ammonium Products Mining Various CF (15% America Specialty 8Surface DEF Industries, density ammonium of acid exhaust Chemtrade mining, acid nitroge
Slide 10: Agricultural market fundamentals
Agroto Growing Developing Changing Due Natural North World Despite Additional 2014. 2015 U.S. Source: ($US/ton) Midwest grain to Chemicals American situation grain large gas make Fertecon, lower populations dietary stocks nitrogen is economies shortages shale up the expected delivered grain North si
Slide 11: Chemical Business distribution and customers
Chemical OK Pryor, Transammonia, UAN Eastern Ag Belt -AN Southern Multiple Diverse Longstanding Direct 65% Centers—35% UAN Distributors rail Corn geographic distribution Plains Plains, Business Koch linkage customer The & &South to Corn Dealers –coverage Andersons, corn channels LSB’s Central, relat
Slide 12: Chemical facilities overview
Chemical El Facility Location Year Plant Site Feedstock Agricultural High Urea Industrial Concentrated Sulfuric Mixed Carbon Ammonia DEF Low AN Transportation Dorado solutions Area Acquired/Built Density xDensity Area Acid xDioxide El Acid El (acres) facilities &xDesign ammonia Chemical Nitric (acre
Slide 13: Annual production capacity by facility
(1) Annual (Tons Facility Nitrogen Cherokee Pryor El Company Feedstock Total natural Ammonia -6ammonia 175 220(1)/375 High 515 300 215 UAN Agricultural A P Ag 110/300 Industrial 115/240 125 Nitric Products Low 15 DEF 485/640 410 30 45/200 AN 220 220/220 Transportation 85 truck, Red 10/765 mmonia (2)
Slide 14: Climate Control Business products and markets
Climate (64% Pumps Fan (23% Water Heat Geothermal Hydronic Uses Coils Heating Commercial Single Leading HVAC Other (13% Products Chillers Modular Make-up Large Units Air 13 Industrial Institutional Handlers Coils Pumps of Custom Source family and Control sales) share Air Fancooling /Commercial & res
Slide 15: Strategic plan
LSB’sisstrategic LSB 14 implementing plan operating and capital improvement plan that is expected to drive shareholder returns
Slide 16: Executing a comprehensive operating and capital plan
Executing Comprehensive Improve Reduce Improving Pryor Additional Extensive Remanufacture Use Expansion Cost Capacity Product Positioning Growth LEAN Increased New 15 of reduction senior management facility industry / risks in balance operational plant expansion profits monitoring on Climate safety
Slide 17: El Dorado expansion projects overview
Chemical Overview Reduces Currently New ~375,000 Progress $128 Front-end Foundations 2015 $147-$172 Mechanical El Capital Improves Enhanced Replaces 370,000 $96 Detailed Foundations, Commenced $29-34 Complete Start-up Completion Note: Dorado million production ammonia million outlook Elmillion inves
Slide 18: El Dorado ammonia plant project timeline
El Dorado Rotating File Front-end Base Spent: To On Foundations Underground Erection Other Aboveground Installation Staffing Training Q4 Commissioning 2012 100% 75% Plant Start-up Today Ammonia 90%+ 17 be budget: Q1 and Complete Equipment 2013 Start-up spent: Equipment Complete $128mm Q2Plant of Rec
Slide 19: Nitric acid plant project timeline
Nitric Contract & File Basic To On Detailed Foundations Underground Erection Setting Aboveground Installation Training Staffing Commissioning Q3 Q2 Q4 Q1 2012 100% 90%+ In Plant Start-up Today 18 Equipment Process be budget: Q4 Q2 and 2013 Start-up Engineering spent: Acid Complete Q1 Q3 Equipment of
Slide 20: Financial overview
Financial LSB 19 has aoverview strong financial position
Slide 21: LSB share price performance
Thear’09 Indexed M 5.2% 242.3% 271.8% 442.4% LSB LSB’s Notes: MLP: HVAC: 20 Company Nitrogen CVR Board Nitrogen: A.O share M ar’10 Partners, Smith, and price M hasAcron, LP M management delivered AAON, performance ar’11 HVAC Rentech Agrium, MGenerac, value ar’12 Nitrogen have –CF to M last aIndustri
Slide 22: Financial summary
Chem Clim $Calendar Sales Gross Segment (1) Adjusted 21inAdjusted millions ate $351.1 $250.5 Profit icalControl summary EBITDA Year EBITDA(1) EBITDA Business 49.3 86.4 % EBITDA 2010 $511.9 $281.6 Ended 14.0% 34.5% Business 130.7 88.2 2011 $45.0 $38.8 statement for $477.8 $266.2 Dec. $37.7 25.5% 31.3
Slide 23: Solid financial position
Solid ($ 2014 Cash Stockholders’ Total Debt 52.9% Dec. (1) million in As31 31, millions) to 2013 and Debt(1) Capitalization financial of 52.1% of capital 2013 Dec. December Investments equipment Mar. 457.3 51.4% 31, Equity position 31 891.3 463.0 31, 51.5% 434.0 loans 2014 (including –2014, strong 8
Slide 24: Capital structure overview
Capital As Cash Other Total Overview Senior $425 Due 7.75% Working $100 $71.1 Expires Net EBITDA Ratings Outlook 23 of Leverage August million and Net December million Debt Secured structure April Moody’s Stable Capital /for Investments Debt of Interest 32.3 2019 Outstanding FY (L 2018 availability
Slide 25: 2014-2017 financial targets
(1) Chemical Climate Annual Gross Net UAN AN Nitric On-Stream Ammonia Financial 2014-2017 2017 Operating Lean/OpEx Minimal Selected Ammonia and targets EBITDA Operating 475,000 Acid(1) Ammonia Production AN Control Does bolt-on working Metrics: Business leverage plants (2) Weighted 24 Revenue Rates(
Slide 26: Chemical Business EBITDA drivers to 2017
(5) (EBITDA—$ $150 $200 $250 $11+ $45+ $90+ 2014 $0 $54 $50 $100 El Increased Expansion Other Rates 2017 Chemical Expanded Lower Improved Higher (1) (2) MMbtu (3) 25 Dorado Assumes 2014 EDC Actual Target $200+ (4) feedstock average annual natural Targeted actual expansion On-stream Business on-strea
Slide 27: Chemical EBITDA sensitivity analysis
Chemical (EBITDA—$ Natural $5.00 $600 265 273 282 290 $550 299 238 246 255 263 $500 272 211 219 228 236 $450 245 184 192 201 209 $400 218 157 165 174 182 Key 191 Average Mining EDC Assumes Ammonia 26 $factors $4.50 ammonia sales Gas ammonia daily that EBITDA—sensitivity per in $4.00 per volumes ain
Slide 28: Climate Control EBITDA drivers to 2017
(EBITDA—$ $50 $60 $70 2014 $0 $10 $20 $27 $30 $40 $60+ $5+ $8+ $20+ 2017 Lean/OpEx on Improvement Climate Initiatives Rebounding New Operating LEAN (1) (2) Increased Planned product Actual Target / Control operating Targeted leverage performance (2) Operating end Sales introductions (1) in Business
Slide 29: Strategic committee results
Strategic LSB 28 believes committee there isresults merit to pursuing value creating alternatives once the operating and capital plan for the chemical business is implemented
Slide 30: Summary of the independent strategic committee
Summary Independent, Strategic Value Comprised Greenwell Messrs. Collectively, Mandate Sale Spin MLP Continuing 29 of of of LP the the Greenwell the included Committee (“Starboard”) of and Climate Climate of to Chemical strategic Messrs. highly four execute William aindependent and Control Control t
Slide 31: Robust process
Robust Process Received Met Thoughtful Tax Estimated Evaluated 30 consequences withstrategic included Starboard, independent breakage near-term transaction refinancing analysis committee holding (as costs of reviewed liquidity fees applicable) benefits financial, financial numerous associated and pr
Slide 32: Determination and execution going forward
Determination: Execution going Timing Sale MLP Chemical Optionality Strategic expansion Near-term Potential Implementing 31 of not forward Climate isappropriate Committee spin aBusiness of spin focus core for Company’s or actions establishment of Execute Control consideration on sale Climate assets
Slide 33: Spin-off of Climate Control at this time
Spin-off LSB At ~ Results 12/31/15 EDC Potentially Bonds Large Costs Liquidity Opportunity Unacceptably Leverage While 32$33M this at expansion amount theoretically point ain bond would critical insufficient challenging cost inbreakage high oftime, reduce projects time transaction ofleverage support
Slide 34: MLP considerations
Seeking While right Relatively Yield As This Capex Need MLP Nitrogen Potential Investors Valuation 33 a would result, time investors toan / Free complete toMLPs valuation MLP will to small access post-IPO impact focus cash not seek ofare MLP the place EDC equity flow Management liquidity discount si
Slide 35: MLP share performance
134 An Sharp Rising Share MLP Since /decline rate unit Performance 2005 10 (25%) CVR Jul-05 2.11% 380% 547% Nit Notes: Nitrogen Yr rogen Rent July year would Treasury Jul-06 (21%) environment performance Nitrogen CCech MLPs 2in10 Corpsyears Corpsnot sinceMLP Aug-07 obtain 3US (average) include CYr 6
Slide 36: Why LSB?
135 Why Operates 5432 LSB? business well-diversified Executing segments on Well-positioned Implementing Strong Focusedfinancial on strategic business in end plan with andmarkets operating position creating and to differentiated drive with capital delivering growthmarket attractive improvement value
Slide 37: Appendix
36 Appendix
Slide 38: Independent Board of directors
837 Board Company’s Independent 5 Highly with of 10 knowledge success Board members directors Significant Relevant Deep governance and experienced with have backgrounds management public and and companyare new been relevant expertise independent financial in perspective added interest hold remain ch
Slide 39: Management's accomplishments
Management’s Building Comprehensive Pryor Including LEAN Launched Key CEO Grew $311 Diversified products Spearheaded source Since in Led 38 2013, the initiatives accomplishments million Barry the taking facility and / $425 Operational Barry EDC Climate new search geothermal the Golsen over and the m
Slide 40: Significant progress at Pryor
Significant Key Use Remanufacture Extensive Additional New Ammonia 83% (tons 43% 93 131 63% 178 2012 39 of initiatives senior inindustry 2013 thousands) monitoring Tons On-Stream 2014 engineering progress management undertaken or Produced expert replacement has Rate and consultants staffing been tea
Slide 41: Cherokee on-stream rate improvement
Cherokee On-stream Expected Extended Adds Implemented Task Committing 40 force 14 days 50-day turnaround isformed rate well-positioned toimproved ofpurchase for additional production to ammonia define performed safety a portion production and to improvement increased and beimplement inhighly of reli
Slide 42: Climate Control construction market recovery
1potential Climate Construction Significant Driven …and Commercial (Sqft 1,418 21,750 1,731 +12% +9% 32008 Single in 4(Starts 1,626 50-year 5620 1,025 +43% +15% 2005 Source:Climate by continues LEAN 1,541high upside /markets Control energy Operational millions) Strategic to as& Introduction Family i
Slide 43: EBITDA reconciliation
Reconciliation include segment The financial ($ Twel 2010 LSB $Net Interest 21.6 14.0 4.2 6.7 7.4 Provisions Loss Cl Equity 0.1 0.4 0.7 0.5 1.0 Chemi Operati Non-operating -0Plus: Depreciation EBITDA 42 .319.6 29.6 83.8 58.6 55.0 in i imate term Industri millions) from ncome ve 2011 in cal resource
Slide 44: Other reconciliation tables
Other Reconciliation tables ($ Chemical Twelve 2010 EBITDA Insurance Less: Unrealized 28.0 94.6 8.6 7.3 purchase $Adjusted 4345.0 131.2 98.5 111.4 82.2 37.7 122.6 91.2 16.8 56.3 in millions) 2011 Non-GAAP provide Months commitments EBITDA Business recoveries 2012 lossreconciliations ofon Ended 2013
Slide 45: What we manufacture: Chemical products
What Agrochemical Urea Manufactured E2 Nitrogen Fertilizer Custom Special Gas High Concentrated Production Nitric Aqueous Semi-conductor Anhydrous Commercial Air Mixed Blends Diesel Sulfuric 98% Pulp DEF Industrial Ammonium 54% Specialty Low Solid Surface 44 Ammonium emission injected Density and Am
Slide 46: Typical nitrogen production process flow
Typical NH3 AN Acid Nitric Natural Plant Ammonia UAN Liquification Urea CO2 Products Pryor 55 45 Solution (storage, UAN (storage, facility and facility Gas are Cherokee (pipeline) marketable process trucks) trucks, trucks, process use flow rail) rail) flow natural at every is (Pryor) typical gas int
Slide 47: Climate Control sales and distribution channels
Climate December By 2008 0% 25% 50% 75% 100% Commercial: Single Retail 220 Other 1,900+ 600 4,000 Plus: Product Chillers 16% Residential 6% Contracting Export Air 4% Heat 7% Fan 14% OEM 64% & Commercial 23% 46 86% Direct 78%Institutional end Handlers Commercial Residential Coils Pumps 2014 OEM Resid
Slide 48: How does geothermal work?
Focus How ?T Geothermal The A In GHP Energy Residential Conventional Fed accelerated GHP’s Green “Free” Noise Extremely 47 ypical GHP winter, summer, Tax Earth does systems free on refrigerants—non-ozone domestic are cost system Residential Credits—30% geothermal fluid absorbs aoperation an long dep
Slide 49: Typical geothermal system payback analysis
Typical For System $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 GHP This Installed Less: Cost Payback Geothermal $0 $1,000 10 93% 80% Positive Heat Standard Natural Propane Oil Pump Furnace with 16 Lighting A/C (6% Annual Note: utility SEER Furnace aint. analysis 16 Efficient for Pump vs. GHP 30% Syste
Slide 50: Annual Meeting of Shareholders
The Company Annual 49 Meeting will of present Shareholders its recommendation has not yet been with scheduled. respect to the election of directors in its proxy statement to be filed with the Securities and Exchange Commission. The date of the 2015
Slide 51: Notes
50 Notes:
Slide 52: Company and investor contacts
LSB Oklahoma its and Investor Company Mark The Fred Linda Corporate 16 Common NYSE Ernst Auditor: Phone: Email: Fax: Website: 51 subsidiaries, South Oklahoma Equity 405-235-5067 212-421-1278 Buonocore Industries, & Behrman Latman ticker mbehrman@lsbindustries.com fbuonocore@equityny.com info@lsbindu