Slide 1: Citibank Basic Materials Conference December 1, 2015
1 Citibank Basic Materials Conference December 1, 2015 Exhibit 99.1
Slide 2: Forward-Looking Statements
2 Forward-Looking Statements 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: Olin Acquires Dow's Chlorine Products Businesses
3 Olin Acquires Dow’s Chlorine Products Businesses • Transaction Overview • Reverse Morris Trust structure • Total value of $4.5 billion, consisting of approximately: 1) $1.5 billion in common stock, 2) $2.1 billion in cash and cash equivalents, 3) $0.6 billion in assumed debt, and 4) $0.3 billion i
Slide 4: Strategic Benefits
4 Strategic Benefits • A Leading Producer of Chlorine Derivatives and Caustic Soda • Leading global chlor alkali producer with 6.2 million tons of low cost chlorine capacity • #1 global seller of membrane caustic soda and chlorinated organics • #1 global supplier of epoxy materials • #1 North Americ
Slide 5: Top Tier, Low-Cost Facilities
5 Top Tier, Low-Cost Facilities • Advantaged electricity - 85% of which will be generated from natural gas and hydroelectric power sources • Plant scale enables fixed costs to be leveraged over a much larger asset base • Closer proximity to customers with expanded plant locations • Access to deep wa
Slide 6: Chlor-Alkali Capacity
6 Chlor- Alkali Capacity (in thousands of short tons) Facility Membrane Diaphragm Total Products Freeport, TX 1,450 1,800 3,250 Chlorine, Caustic, VCM, EDC, Epoxy and Chlorinated Organics Plaquemine, LA 1,070 1,070 Chlorine, Caustic, EDC, Chlorinated Organics McIntosh, AL 352 426 778 Chlorine, Caust
Slide 7: Diversified Geographic Footprint
7 Diversified Geographic Footprint Chlor–Alkali & Vinyl Epoxy Global Chlorinated Organics Supporting assets Zhangjiagang, China CER Gumi, South Korea CER Guaruja, Sao Paulo, Brazil LER, CER Pisticci, Italy CER Roberta, GA CER Rheinmünster, Germany CER Terneuzen, Netherlands Cumene Baltringen, German
Slide 8: Ability to Rapidly Access Global Markets
8 Ability to Rapidly Access Global Markets as Attractive Situations Develop Distribution Designed For Low Cost Access to Deep-water Ports, Railcars, River Systems, Trucks and Other Logistical Networks Rail Truck Expanded Transportation Options
Slide 9: Significant Synergies
9 Increased procurement efficiencies Elimination of duplicate terminals and optimization of freight to terminals Reduction of net acquisition cost for purchased caustic Savings from trucking and rail fleet optimization COGS reduction opportunities Logistics & procurement SG&A Cost opti
Slide 10: Chlorine Use Diversity
10 Number of Chlorine Uses % of North America Chlorine Capacity (KTA) 37 22 15 6 7 4 Chlorine Use Diversity Chlorine Use Diversity Merchant HCl EDC VCM Allyl Epi Bleach End Markets Served Refrigerants Coatings Paper & Pulp Construction Food Packaging Surfactants Pharmaceu
Slide 11: New Olin Enhanced Stable Cash Flow
11 New Olin Enhanced Stable Cash Flow • Legacy Olin: • Leading position in North American sales of merchant chlorine • Leader in Industrial bleach which provides non-cyclical cash flows • Leading producer of on-purpose Hydrochloric Acid • Winchester provides stable and predictable cash flows • New O
Slide 12: Chlorinated Organics Value Drivers
12 Low-Cost ECU Chlorinated By- Products (HCl, RCl) Hydrocarbons (Methanol etc.) Chlorinated Organics Value Drivers Chlorinated Organics • Breadth of channels, geographic reach, diversity of end markets • Customer relationships and strong contract position • Low-cost energy and feed-stocks • Superio
Slide 13: Global Epoxy
13 • The lowest cost producer of key epoxy materials • Global asset footprint aligned with targeted applications • High value downstream growth applications • Excellent flexibility to maximize value throughout entire epoxy chain Global Epoxy Olin is the Largest and Most Integrated Epoxy Business in
Slide 14: Epoxy Value Chain Integrated & Low Cost
14 Epoxy Value Chain Integrated & Low Cost Allyl chloride EPI Liquid Epoxy Specialty Epoxies Blends Hardeners Solid/Solid Solutions Brominated Epoxy Cumene Phenol Acetone Benzene BPA Caustic Propylene Chlorine Coatings • Industrial • Marine • Protective • Automotive • Packaging • AGMF Electronics •
Slide 15: Winchester Strategy
15 Brands Winchester Strategy • Centerfire relocation: – $24 million of cost savings in 2014 – Expect $35 million of cost savings in 2015 – Expect $35-$40 million lower annual operating costs beginning in 2016 • New product development: – Continue to develop new product offerings – Maintain reputati
Slide 16: Growing Target Shooting Participation
Increased Installed Base Growing Target Shooting Participation TARGET SHOOTERS ARE ON THE RISE wiLbon 34,¢ 2009 NEW SHOOTERS ARE YOUNGER HANDGUN SHOOTING TOPS THE CHART ("eSvasusne5] en SHOOTERS r.. Yo 31% De SHOT HANDGUNS FEMALE PARTICIPATION IS INCREASING
Slide 17: Winchester Is Growing
17 0 20 40 60 80 100 120 140 160 180 2006 2007 2008 2009 2010 2011 2012 2013 2014 Q1 '15 Winchester Is Growing • We expect Winchester’s 2015 earnings to exceed 2014 earnings as a result of: − Cost savings from the centerfire relocation to Oxford, MS − A significant increase in the number of sport sh
Slide 18: Strong Pro Forma Free Cash Flow
18 Strong Pro Forma Free Cash Flow $ in millions pro forma Adjusted EBITDA pro forma Cash Flow pro forma Interest Dividend pro forma Free Cash Flow pro forma Taxes Capital Spending $962 $280 $599 ($250) ($133) ($186) 2 3 4 5 Source: Dow, DCP Management, Olin Management (1) Company Adjusted EBITDA fo
Slide 19: Uses of Cash
19 Uses of Cash • Annual maintenance capital spending estimated at $250 million • Annual dividend $133 million • Free Cash flow focus on: • Funding of synergy capital - $200 million over three years • Repayment of debt