Slide 1: Fourth Quarter 2023 Earnings Presentation
Fourth Quarter 2023 Earnings Presentation January 26, 2024
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 4Q23 Highlights $US Millions Last FY $700 Peak • Delivered $210 million of adjusted EBITDA overcoming a $600 ~$100 million penalty from the Value Accelerator $500 Initiative $400 • Stopped the ECU value decline by running our Value $300 New FY Trough
Slide 4: Indicators of Success from Olin's ECU Value Accelerator Initiative
Indicators of Success from Olin’s ECU “Value Accelerator Initiative” • Caustic trade indices are projecting price increases in the first quarter, following a slight decline in December • Olin successfully implemented caustic price increases effective January 1 across numerous customers • Spot export
Slide 5: Appendix
Appendix
Slide 6: ESG Quarterly Highlight
ESG Quarterly Highlight Next Steps in Olin’s Sustainability Roadmap Improving Olin’s ESG transparency, simplicity, and ease of access New ESG Factsheet for Task Force on Climate- Website Improvements Olin’s key ESG metrics and Related Financial Disclosure in mid-2024 for easier activities supporting
Slide 7: Environmental ESG Scorecard
ESG SCORECARD 2023 % Change Climate: Olin Corporation, Global Operations 2023 2022 from baseline 1, 6 Target (year) Total Energy (Direct & Indirect)7 (MM GJ) 58.6 74.1 -39% % Electricity from Renewable Energy/Low Carbon Sources 2, 7 6.1% 7.1% 3% Scope 1 CO2e Emissions (Million Mt CO2e) 7 1.4 1.9 -44
Slide 8: Chlorine: Delivering on our Value Strategy
Delivering on our Value Strategy 4Q23 ECU PCI Parlay Volume Tracker 30% % Parlay Tons / Total Quarterly Sales Volume1 25.2% 25% 294 287 261 262 257 255 19.0% 238 20% 17.7% Index 222 211 16.1% 192 191 15% 12.2% 148 10.6% 9.7% 9.8% 10% 8.7% 8.1% 7.5% 100 100 106 6.4% 93 Olin - ECU PCI 4.6% 5% Winning
Slide 9: 2024 Levered Free Cash Flow estimated to be ~$545+ million
2024 Levered Free Cash Flow (LFCF) estimated to be ~$545+ million ($ in millions) $250 $25 $238 $175 $67 Primary uses of 2024 LFCF: • Share repurchases • Shareholder dividends • Alliance/Joint Venture opportunities ~$1.3+ Billion Cash Taxes 2 Change in Capital Interest 5 Other ~$545+ Million 2024 Ad
Slide 10: Winchester Segment Performance
Winchester Segment Performance Sales Adjusted EBITDA (in millions) (in millions) $380.2 $395.4 $71.1 $73.5 Sequential: 4Q23 vs 3Q23 – Higher commercial pricing – Inclusion of White Flyer results – Lower domestic and international military volume 3Q 2023 4Q 2023 3Q 2023 4Q 2023 +4% +3% $1,600.7 $397.
Slide 11: Chlor Alkali Products & Vinyls Performance
Chlor Alkali Products & Vinyls Performance Sales Adjusted EBITDA (in millions) (in millions) $279.9 $969.6 $906.1 Sequential: 4Q23 vs 3Q23 $171.3 – Lower pricing, mainly caustic soda – Lower volumes in support of our Value Accelerator Initiative – Positive impact from VCM return to operation 3Q 2023
Slide 12: Epoxy Segment Performance
Epoxy Segment Performance Sales Adjusted EBITDA (in millions) (in millions) $321.6 $313.1 Sequential: 4Q23 vs 3Q23 – Higher margins due to higher pricing and lower raw material -$10.1 costs – Continued incremental costs -$14.1 from inventory reductions 3Q 2023 4Q 2023 3Q 2023 4Q 2023 – Lower volumes
Slide 13: Outlook: Full year 2024 modeling assumptions
Outlook: Full year 2024 modeling assumptions ($ in millions) Line Item Forecast Key Elements Capital Spending $225 to $250 Expected to be similar to 2023 levels Depreciation & Amortization $500 to $525 Expected to be lower than 2023 levels Payments Under Long-term Participation in energy project $25
Slide 14: 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 15: Non-GAAP Quarterly Financial Measures by Segment
Non-GAAP Quarterly Financial Measures by Segment (a) Three Months Ended Three Months Ended Three Months Ended December 31, 2023 September 30, 2023 December 31, 2022 Income (Loss) Reconciling Depr and Adjusted Income (Loss) Reconciling Depr and Adjusted Income (Loss) Reconciling Depr and Adjusted (In
Slide 16: Non-GAAP Full Year Financial Measures by Segment
Non-GAAP Full Year Financial Measures by Segment (a) Year Ended Year Ended December 31, 2023 December 31, 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 a