Slide 1: 2010 Citi Basic Materials Conference
Exhibit 99.1 2010 Citi Basic Materials Conference November 30, 2010 1
Slide 2: Olin Representatives
Olin Representatives Joseph D. Rupp Chairman, President & Chief Executive Officer John E. Fischer Senior Vice President & Chief Financial Officer Larry P. Kromidas Assistant Treasurer & Director, Investor Relations lpkromidas@olin.com (618) 258 - 3206 2
Slide 3: Company Overview
Company Overview Olin 9MO 2010 FY 2009 Revenue: $ 1,201 $ 1,532 EBITDA: $ 163 $ 292 Pretax Operating Inc.: $ 79 $ 210 EPS (Diluted): $ .79 $ 1.73 Chlor Alkali Winchester Third Largest North American A Leading North American Producer Producer of Chlorine and Caustic Soda of Small Caliber Ammunition 9
Slide 4: Olin Vision
Olin Vision To be a leading Basic Materials company delivering attractive, sustainable shareholder returns • Being the low cost, high quality producer, and the #1 or #2 supplier in the markets we serve • Providing excellent customer service and advanced technological solutions • Generating returns a
Slide 5: Olin Corporate Strategy
Olin Corporate Strategy Olin Corporation Goal: Superior Shareholder Returns Total Return to Shareholders in Top Third of S&P 1000 Return on Capital Employed Over Cost of Capital Through the Cycle 1. Build on current leadership positions in the Chlor-Alkali and Ammunition businesses • Improve operati
Slide 6: Investment Rationale
Investment Rationale • Leading North American producer of Chlor-Alkali • Strategically positioned facilities • Diverse end customer base • Favorable industry dynamics • Leading producer of industrial bleach with additional growth opportunities • Pioneer synergies improved chlor-alkali cost structure
Slide 7: Chlor Alkali Segment
Chlor Alkali Segment Chlor Alkali Manufacturing Process SALT + ELECTROLYSIS = OUTPUTS N. American % 2009 Position Revenue Caustic #3 53% Caustic Soda (Sodium Soda or Hydroxide) KOH #2 8% KOH (Potassium Hydroxide) Bleach #1 10% (Sodium Industrial Sodium Chloride Hypochlorite) or Chlorine Chlorine #1
Slide 8: Olin's Chlor Alkali Strategy
Olin’s Chlor Alkali Strategy • Be the preferred supplier to chlor alkali customers in addition to being the low cost producer • Goal is to increase the value of the Chlor Alkali Division to Olin through: – Optimizing capacity utilization – Higher margin downstream products – Cost reduction and finan
Slide 9: Olin is #3 Chlor-alkali Producer
Olin is #3 Chlor-alkali Producer Source: CMAI/Olin - 2009 year-end figures Oxy includes OxyVinyls and does not reflect the announced reduction of approximately 280,000 tons of capacity at their Taft, LA facility. Olin includes 50% of Sunbelt joint venture. 9
Slide 10: Olin's Geographic Advantage
Olin’s Geographic Advantage Becancour, Tacoma, WA Quebec Chlorine Capacity Location Niagara Falls, NY (000s Short Tons) McIntosh, AL 415 Tracy, CA Becancour, Quebec (1) 340 Henderson, Niagara Falls, NY 286 NV Charleston, Charleston, TN 248 Santa Fe Springs, TN St. Gabriel, LA 246 CA 39 Augusta, McIn
Slide 11: Diverse Customer Base
Diverse Customer Base North American Industry Olin Chlorine Chlorine: “Organics” includes: Propylene oxide, epichlorohydrin, MDI, TDI, polycarbonates. “Inorganics” includes: Titanium dioxide and bromine. Caustic Soda: “Organics” includes: MDI, TDI, polycarbonates, synthetic glycerin, sodium formate,
Slide 12: Favorable Industry Dynamics
Favorable Industry Dynamics Capacity Rationalization Industry Consolidation mmMT Acquisition Target Position Date 15.6 • Acquired by Olin • 725,000 Short Tons ECU Capacity 13.6 Pioneer 2007 • Then the #7 ranked producer in North America 2.0 mm MT • 4.7% of North American capacity or 13% of • Acquire
Slide 13: Product Pricing Has Been Dynamic
Product Pricing Has Been Dynamic (1) North American Caustic Soda Avg. Acquisition, US$/Short Ton North American Chlorine Contract, US$/Short Ton (1) ECU Price = the price of 1 ton of chlorine + 1.1 times the price of 1 ton of caustic Source: CMAI. 13
Slide 14: Chlor-Alkali Outlook
Chlor-Alkali Outlook • 2010 segment earnings will be solidly profitable in trough period without sustaining a loss in any one quarter • Q4 2010 and Q1 2011 ECU Netbacks are expected to improve reflecting $135 of 3Q 2010 caustic soda price announcements • Price announcements impacting 2010: Chlorine
Slide 15: Why Industrial Bleach?
Why Industrial Bleach? • Olin is the leading North American bleach producer with a capacity of 250 million gallons (or 160,000 ECUs) in a 1 billion gallon industry • Olin has 18% market share and current installed capacity to service 25% of the market with low-cost expansion opportunities • Utilizes
Slide 16: Mercury Legislation
Mercury Legislation • On October 21, 2009, the U.S. House of Representatives Committee on Energy and Commerce passed a bill that would require chlor-alkali producers using mercury cell technology to decide by 6/30/12 whether they would shut down or convert those plants. The plants would need to be s
Slide 17: Winchester Segment
Winchester Segment Hunters & Recreational Shooters Winchester Strategy Mass Law • Leverage existing strengths Products Retail Distributors Military Industrial Merchants Enforcement – Seek new opportunities Rifle ü ü ü ü ü to leverage the legendary Winchester® Handgun ü ü ü ü ü brand name – Investmen
Slide 18: Winchester's Leading Industry Position
Winchester’s Leading Industry Position • One of the three leading ammunition manufacturers in the United States * • Strong brand awareness – Top 15 of all sporting goods brands • Legendary brand image – Positively associated with American heritage, John Wayne, Teddy Roosevelt and cowboy/western conn
Slide 19: Favorable Industry Dynamics
Favorable Industry Dynamics • Economic environment leading to personal security concerns • Fears of increased gun/ammunition control due to change in administration Commercial • New gun and ammunition products • Strong hunting activity in weak economy, driven by cost/benefit of hunting for food and
Slide 20: Winchester
Winchester • YTD 2010 segment earnings of $59 million follow record full year 2009 earnings of $69 million • Olin believes surge has ended, but with higher military and law enforcement component, we expect financial results will exceed pre-surge levels • Long-term military and law enforcement agency
Slide 21: Financial Highlights
Financial Highlights • Strong Balance Sheet – Q3 2010 cash balance approximately $393 million and is expected to be in the $450-$475 million range by year end – Pension plan remains fully funded with no contributions required until at least 2012 – 2010 capital spending forecast to be 85% of deprecia
Slide 22: Historical Financial Performance
Historical Financial Performance Revenues EBITDA ($ millions) ($ millions) $1,765 $335 $1,532 $201 $207 $292 $1,277 $29 $1,040 -$96 -$107 -$103 Note: EBITDA is Income from Continuing Operations Before Taxes, excluding Interest Expense, Interest Income, and Depreciation and Amortization expense. 22
Slide 23: Potential Uses of Cash
Potential Uses of Cash • Olin’s financial policies have prioritized conservatism, caution and prudence • Current cash levels support: • Annual working capital swings of $50 to $100 million • Investments to expand bleach business including low salt, high strength bleach plants. • $15 to $20 million c
Slide 24: Investment Rationale
Investment Rationale • Leading North American producer of Chlor-Alkali • Strategically positioned facilities • Diverse end customer base • Favorable industry dynamics • Leading producer of industrial bleach with additional growth opportunities • Pioneer synergies improved chlor-alkali price structur
Slide 25: 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 describe
Slide 26: Appendix
Appendix Olin Industries Mathieson Chemical Corp. 1892 founded in East Alton, IL providing 1892 founded in Saltville, VA to produce blasting powder to Midwestern coal mines soda ash. 1898 formed Western Cartridge Company 1896 builds first chlor-alkali plant in US to manufacture small arms ammunition
Slide 27: Capacity Rationalization: 2000-2013
Capacity Rationalization: 2000-2013 27 Technology Key: HG=Mercury, DIA=Diaphragm, MB=Membrane, STB=Salt-to-Bleach. Source: Olin Data
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