Slide 1: First Quarter 2016 Earnings Presentation
First Quarter 2016 Earnings Presentation May 3, 2016 TM Exhibit 99.1
Slide 2: Forward-Looking Statements
Forward-Looking Statements 2 This communication includes forward-looking statements. These statements relate to analyses and other information that are based on management’s beliefs, certain assumptions made by management, forecasts of future results, and current expectations, estimates and projecti
Slide 3: Performance Highlights
Performance Highlights 3 3 Achieved Adjusted EBITDA of $215 million at top end of $195 million to $215 million guidance range Reiterating full year guidance range of between $915 million to $985 million Adjusted EBITDA in 2016 Forecasting second quarter 2016 Adjusted EBITDA range of $220 million to
Slide 4: Chlor Alkali Products and Vinyls Segment Performance
1Q16 4Q15 ∆ Q/Q Sales $704.3 $681.1 3.4% Adjusted EBITDA $170.0 $150.6 12.9% Sales growth driven by higher volumes Adjusted EBITDA improvement driven by higher volumes and lower electricity costs Closed a combined total of 433,000 tons of chlor alkali capacity across Henderson, NV, Niagara Fal
Slide 5: Chlor Alkali Products and Vinyls Pricing and Volume Comparisons
Chlor Alkali Products and Vinyls Pricing and Volume Comparisons 1Q16 versus 1Q15 4Q15 Chlorine Caustic Soda N/A EDC N/A Bleach HCI 1Q16 versus 1Q15 4Q15 Chlorine Caustic Soda EDC N/A Bleach HCI Volume Comparison Pricing Comparison 5
Slide 6: Long-term Views on Caustic Soda
Long-term Views on Caustic Soda North American chlor alkali capacity reductions No major North American chlor alkali capacity additions announced Increasing North American caustic exports European mercury cell chlor alkali production sunset by the end of 2017 Growing caustic soda consumption within
Slide 7: Epoxy Segment Performance
1Q16 4Q15 ∆ Q/Q Sales $460.2 $429.6 7.1% Adjusted EBITDA $29.9 $30.7 (2.6)% Sales growth driven by higher volumes partially offset by lower prices Adjusted EBITDA slightly lower as improved volumes were offset by lower pricing Epoxy business to continue to improve during 2016 driven by volume
Slide 8: Winchester Segment Performance
Sales growth driven by increased shipments to commercial customers in the seasonally stronger first quarter Adjusted EBITDA improvement reflects higher commercial volumes and lower commodity and other material costs Operating efficiency initiatives to continue to materialize throughout 2016
Slide 9: Corporate & Other
Corporate & Other 9 1Q16 4Q15 Pension Income $12.2 $13.4 Environmental Expense $(2.7) $(2.6) Other Corporate and Unallocated Costs $(29.6) $(15.8) Restructuring Charges $(92.8) $(0.5) Acquisition-related Costs $(10.2) $(88.0) ($ in millions) The corporate and other unallocated costs are consistent
Slide 10: Guidance Assumptions
Guidance Assumptions 10 Full Year 2016 Forecast Key Elements Capital Spending $240 to $280 Maintenance level of capital spending of $225M to $275M annually Synergy Capital $60 Synergy projects include chlorine loading, bleach capacity and caustic soda evaporation Total $300 to $340 Depreciation & Am
Slide 11: 2016 Adjusted EBITDA Outlook
2Q $220 – $240 • Reduced Maintenance turnaround costs • Improved epoxy volumes • Increased synergy realization $215 $220 - $240 $435 - $455 $480 - $530 11 2016 Adjusted EBITDA Outlook 1Q16 2Q16 1H16 2H16 FY16 $915 - $985 2H $480 – $530 1Q $215 • Improving volumes from Q1 • Chlor alkali products pric
Slide 12: Appendix
Appendix 12
Slide 13: Non-GAAP Financial Measures
Non-GAAP Financial Measures(a) Olin's definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net (loss) income plus an add-back for depreciation and amortization, interest expense (income), income tax expense (benefit), other expense (income), restructurin
Slide 14: Non-GAAP Financial Measures by Segment
Non-GAAP Financial Measures by Segment 14 (In millions) Income (loss) before Taxes Depreciation and Amortization Other Adjusted EBITDA Chlor Alkali Products and Vinyls 68.1$ 101.9$ -$ 170.0$ Epoxy 8.2 21.7 - 29.9 Winchester 28.7 4.6 - 33.3 (In millions) Income (loss) before Taxes Depreciation and Am
Slide 15: End slide
End slide TM 15