Slide 1: Second Quarter 2023 Earnings Presentation
Second Quarter 2023 Earnings Presentation July 28, 2023
Slide 2: Forward-Looking Statements
Forward‐Looking Statements: This presentation includes forward‐looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to analyses and other information that are based on management's beliefs, certain assumptions made by management, fore
Slide 3: Results & Outlook
Results & Outlook Olin Quarterly Adjusted EBITDA 2Q23 Highlights Last FY $US Millions $700 Peak • Weak chemicals market conditions $600 • Industry benchmark showed chlorine price decline, while Olin’s $500 price increased $400 New FY Trough • ~$50 million impact from VCM plant operating issues $300
Slide 4: Delivering on our Value Strategy
Delivering on our Value Strategy 2Q23 ECU PCI Parlay Volume Tracker 20% 17.7% % Parlay Tons / Total Quarterly Sales Volume1 18% 16.1% 294 287 16% 261 262 257 255 14% 12.2% Index 238 222 12% 10.6% 9.7% 9.8% 192 10% 8.7% 8.1% 7.5% 148 8% 6.4% 106 6% 4.6% 100 93 100 Olin ‐ ECU PCI 4% Winning model gene
Slide 5: Key Initiatives Lift Future Peaks & Troughs
Key Initiatives Lift Future Peaks & Troughs • Epoxy – Epoxy Systems growth and increased Olin commercializations – wind energy, composites, advanced electronics & specialty coatings – Epoxy restructuring benefits – Servicing sustainability megatrends • Chlor Alkali Products & Vinyls – Blue Water All
Slide 6: Appendix
Appendix
Slide 7: ESG Quarterly Highlight
ESG Quarterly Highlight Olin’s Water Reduction Team recently implemented a project at our Plaquemine, LA site, saving enough water annually to fill 6,500 Olympic‐sized swimming pools. Water is used across our sites for cooling, emissions control, and various other applications. Leadership challenges
Slide 8: ESG Scorecard: Environmental
ESG SCORECARD 2022 % Change Climate: Olin Corporation, Global Operations 2022 2021 from baseline 1, 6 Target (year) Total Energy (Direct & Indirect) (MM GJ) 74.1 83.1 ‐23% % Electricity from Renewable Energy/Low Carbon Sources 2 7.1% 7.2% 20% Scope 1 CO2e Emissions (Million Mt CO2e) (Includes Trucki
Slide 9: 2023 Levered Free Cash Flow estimated to be ~$700 million
2023 Levered Free Cash Flow (LFCF) estimated to be ~$700 million ($ in millions) $250 $50 $225 $175 $100 Primary uses of 2023 LFCF: • Share repurchases • Shareholder dividends • Alliance/Joint Venture opportunities ~$1.4 Billion Cash Taxes 2 Change in Capital Interest 5 Other ~$700 Million 2023 Adju
Slide 10: Strong financial profile for a challenging economic environment
Strong financial profile for a challenging economic environment 2021 + 2022 2023 OUTLOOK • 2021 ‐ $2.5 Billion • Recessionary trough level ADJUSTED • 2022 ‐ $2.4 Billion Adjusted EBITDA EBITDA ~$4.9 Billion ~$1.4 Billion • Debt reduction $1.3B • Disciplined capital allocation LEVERED FREE • Share re
Slide 11: Resetting the Adjusted EBITDA floor in a recession scenario
Resetting the Adjusted EBITDA floor in a recession scenario VERSUS $2.8bn VERSUS 2020 Adjusted EBITDA1 [$636 mm Adjusted EBITDA] Our Resilient Model Economic Our Bottom‐Up Build We can go deep, in withdrawing Recession‐Case: • Merchant Cl2 pricing + $500+ mm from poor quality markets. Holding our pr
Slide 12: Winchester Segment Performance
Winchester Segment Performance Sales Adjusted EBITDA (in millions) (in millions) $366.5 $366.6 $71.0 $67.2 Sequential: 2Q23 vs 1Q23 – Lower commercial pricing – Higher domestic and international military volume – Lower commodity and manufacturing costs 1Q 2023 2Q 2023 1Q 2023 2Q 2023 +0% +6% $439.9
Slide 13: Chlor Alkali Products & Vinyls Performance
Chlor Alkali Products & Vinyls Performance Sales Adjusted EBITDA (in millions) (in millions) $1,117.1 $360.3 Sequential: 2Q23 vs 1Q23 $1,002.3 $293.4 – Lower volumes, focusing on value vs. volume – Negative impact from VCM operating issues – Lower caustic soda pricing, partially offset by higher chl
Slide 14: Epoxy Segment Performance
Epoxy Segment Performance Sales Adjusted EBITDA (in millions) (in millions) $360.7 $35.9 $333.8 Sequential: 2Q23 vs 1Q23 – Lower margins due to lower pricing, partially offset by $14.7 lower benzene and propylene raw material costs – Lower operating costs 1Q 2023 2Q 2023 1Q 2023 2Q 2023 ‐7% ‐59% $77
Slide 15: Outlook: Full year 2023 modeling assumptions
Outlook: Full year 2023 modeling assumptions ($ in millions) Line Item Forecast Key Elements Capital Spending $200 to $250 Expected to be similar to 2022 levels Depreciation & Amortization $525 to $550 Expected to be lower than 2022 levels Payments Under Long‐term Participation in energy project $50
Slide 16: Non-GAAP Financial Measures – Adjusted EBITDA
Non‐GAAP Financial Measures – Adjusted EBITDA (a) Olin's definition of Adjusted EBITDA (Earnings before interest, taxes, depreciation, and amortization) is net income (loss) plus an add‐back for depreciation and amortization, interest expense (income), income tax provision (benefit), other expense (
Slide 17: Non-GAAP Quarterly Financial Measures by Segment
Non‐GAAP Quarterly Financial Measures by Segment (a) Three Months Ended Three Months Ended Three Months Ended June 30, 2023 March 31, 2023 June 30, 2022 Income (Loss) Reconciling Depr and Adjusted Income (Loss) Reconciling Depr and Adjusted Income (Loss) Reconciling Depr and Adjusted (In millions) b
Slide 18: Non-GAAP YTD Financial Measures by Segment
Non‐GAAP YTD Financial Measures by Segment (a) Six Months Ended Six Months Ended June 30, 2023 June 30, 2022 Income (Loss) Reconciling Depr and Adjusted Income (Loss) Reconciling Depr and Adjusted (In millions) before Taxes Items Amort EBITDA before Taxes Items Amort EBITDA Chlor Alkali Products and