Slide 1: Longbow Research Basic Materials Investor Conference
Exhibit 99.1 Longbow Research Basic Materials Investor Conference March 6, 2012 1
Slide 2: Company Overview
Company Overview Olin Corporation FY 2011 FY 2010 Revenue: $1,961 $1,586 EBITDA: $ 508 $ 188 Pretax Operating Inc.: $ 380 $ 77 EPS (Diluted): $ 2.99 $ .81 Chlor Alkali Winchester Third Largest North American Producer A Leading North American Producer of of Chlorine and Caustic Soda Small Caliber Amm
Slide 3: Investment Rationale
Investment Rationale • Leading North American producer of Chlor-Alkali • Leading producer of industrial bleach with additional growth opportunities • Leading producer of burner grade hydrochloric acid • Favorable industry dynamics for both businesses • Winchester’s leading industry position • Signif
Slide 4: Chlor Alkali Segment
Chlor Alkali Segment Chlor Alkali Manufacturing Process BRINE + ELECTROLYSIS = OUTPUTS North Percent American of 2011 1.8 Tons Salt & 2.8 Megawatts Position Revenue .5 Tons Water Electricity KOH - 1.59 Tons #2 9% KOH (Potassium Hydroxide) or Caustic Soda - 1.13 Tons #3 50% Caustic Soda (Sodium Hydro
Slide 5: 2011 North American Chlorine Production Capacity by Company
4,000 » 3,500 - 2011 North American Chlorine Production Capacity by Company (ST) s e 3 Chlor-alkali Producers - & Technologies @ Other @ Salt-to-Bleach @ Mercury ™ Membrane @ Diaphragm 760
Slide 6: Mercury Transition Plan
Mercury Transition Plan • Olin currently operates 2 mercury cell plants representing approximately 360,000 ECUs or 17% of our total capacity • By the end of 2012, Olin expects to convert 200,000 ECUs of mercury cell technology to membrane technology and will shutdown the remaining 160,000 ECUs • Thi
Slide 7: Favorable Industry Dynamics
Favorable Industry Dynamics Capacity Rationalization Industry Consolidation 17,300 Acquisition Position Date 16,040 Equa-Chlor 2011 • Acquired by PPG • 70,000 Short Tons ECU Capacity PolyOne 2011 • Olin acquired PolyOne’s 50% ownership in the SunBelt JV • 176,000 Short Tons ECU Capacity 1.26 million
Slide 8: Diverse Customer Base
Diverse Customer Base North American Industry Olin Corporation Chlorine Caustic Soda Source: CMAI and Olin 2011 demand. Includes sales of SunBelt. Chlorine: “Organics” includes: Propylene oxide, epichlorohydrin, MDI, TDI, polycarbonates. “Inorganics” includes: Titanium dioxide and bromine. 8 Caustic
Slide 9: Olin's Geographic Advantage
Olin’s Geographic Advantage Becancour, Tacoma, WA Quebec Chlorine Location Niagara Falls, NY (000sCapacity Short Tons) Tracy, CA McIntosh, AL 426 Diaphragm McIntosh, AL - SunBelt 352 Membrane Henderson, 297 Diaphragm NV Becancour, Quebec Charleston, 65 Membrane Santa Fe Springs, TN Niagara Falls, NY
Slide 10: Industrial Bleach
Industrial Bleach • Olin is the leading North American bleach producer with 18% market share and current installed capacity to service 25% of the market with low-cost expansion opportunities • Bleach utilizes both chlorine and caustic soda in an ECU ratio • Bleach commands a premium price over an EC
Slide 11: Bleach Growth is a Key Objective
Bleach Growth is a Key Objective OLIN HYPURE® BLEACH AND RAILCAR DELIVERY WILL IMPROVE ACCESS TO THE MARKET • Increased stability and shelf life • Reduced transportation costs • Olin bleach volume delivers steady growth • Larger shipping radius • Key bleach target segments include water treatment, c
Slide 12: Hydrochloric Acid
Hydrochloric Acid • Demand is increasing for HCl, primarily from oil and gas exploration • By-product HCl accounts for 75% of the market supply that is available, but availability is subject to the demand for urethanes and fluorocarbons • Currently 25% of HCl market supply is “Burner-grade” or “on-p
Slide 13: Growing HCl Demand
Growing HCl Demand Source: CEH 2009 North American HCl Supply North American HCl Demand • Burner acid is the only growing HCl supply source • Oil & Gas demand has outstripped supply • 75% of HCl is supplied by Gulf byproduct producers • U.S. steel industry demand is recovering • Byproduct HCl availa
Slide 14: Chlor-Alkali Outlook
Chlor-Alkali Outlook • 2011 ECU netbacks(1) of $560 were up $85 over 2010 netbacks and we expect Q1 2012 netbacks to include the 2011 $65 caustic soda price announcement • A subsequent $80 caustic increase was announced in November 2011 followed by a $45 price hike in February/March 2012 by all majo
Slide 15: Winchester Segment
Winchester Segment Hunters & Recreational Shooters Winchester Strategy Mass Law • Cost Reduction Products Retail Distributors Military Industrial Merchants Enforcement – Centerfire relocation Rifle ü ü ü ü ü N/A – Once complete, we expect $30 million Handgun ü ü ü ü ü N/A lower operating costs Rimfi
Slide 16: Favorable Industry Dynamics
Favorable Industry Dynamics • Economic environment leading to personal security concerns • Fears of increased gun/ammunition control Commercial • New gun and ammunition products • Strong hunting activity in weak economy, driven by cost/benefit of hunting for food and increased discretionary time • S
Slide 17: Winchester
Winchester • 2011 segment earnings of $38 million represent the third most profitable year and include $5 million of restructuring charges associated with the move of centerfire operations to Oxford, MS • The U.S. Army awarded Winchester a 5 year contract to produce .50 caliber, 5.56mm and 7.62mm am
Slide 18: Centerfire Relocation
Centerfire Relocation • The decision to relocate Winchester’s centerfire operations, including 1,000 jobs, was made on November 3, 2010 • The controlled relocation process is expected to take up to 5 years to complete assuring high quality product is available for our customers throughout the transi
Slide 19: Strong Balance Sheet
Strong Balance Sheet • The year end 2011 cash balance of $357 million reflects: • A $201 million CAPEX program; • $132 million used to acquire PolyOne’s 50% interest in SunBelt; • A net $51 million reduction of debt outstanding; and • $68 million returned to shareholders • No material debt maturitie
Slide 20: Profit Outlook
Profit Outlook • In 2011, Chlor-alkali’s earnings were more than twice 2010 earnings and Winchester’s earnings were approximately 50% higher than pre-surge levels • 2011 EBITDA was the second highest in our history • Entering 2012, ECU pricing is higher than a year ago • Higher margin bleach busines
Slide 21: Forward-Looking Statements
Forward-Looking Statements This presentation contains estimates of future performance, which are forward-looking statements and actual 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
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