Slide 1: Second Quarter 2016 Update
Second Quarter 2016 Update July 22, 2016 TM Exhibit 99.1
Slide 2: Forward-Looking Statements
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 projection
Slide 3: Preliminary Second Quarter 2016 Adjusted EBITDA
Preliminary Second Quarter 2016 Adjusted EBITDA1 ($ in millions) Second Quarter Forecast Preliminary Second Quarter $220M - $240M Approximately $180M2 Caustic Soda Mix & Pricing Raw Materials Costs Chlorinated Organics Non-cash Mark-to-Market Expenses & Other Timing Items 2 1. Olin’s definition of “
Slide 4: Third and Fourth Quarter 2016 Outlook: Caustic Soda Overview
Olin System Second Quarter 2016 • Overall Olin caustic soda netback declined from 1Q16 – Customer Mix – 1Q16 index declines realized – Lag in realization of 2Q16 index increases • Domestic volume declined ~5% from expectations and was replaced by export volume • Export volume increased by 14% versus
Slide 5: Ethylene Dichloride Export Pricing
Ethylene Dichloride Export Pricing 12/31/15 IHS Forecast 6/30/16 IHS Forecast • Low oil prices have made Naphtha-based PVC more competitive • Downward trend in international vinyl prices has pressured EDC export pricing • Result is lower than expected recovery in EDC pricing • $0.01 per pound price
Slide 6: Chlorinated Organics
Chlorinated Organics • Overall chlorinated organics volumes projected to be ~10% lower than 2016 expectations 5 • North American and European refrigerants customers negatively impacted by softer demand and increased imports from China • North American packaging and agriculture demand also below expe
Slide 7: FY 2016 Forecast and Mid-Cycle Adjusted EBITDA Potential
$1.5 billion + FY 2016 Forecast $840 – $900 million Chlor Alkali Mid-Cycle EDC Price Recovery Continued Epoxy Improvement Synergies Adjusted EBITDA Potential: Mid-Cycle 6
Slide 8: End slide
End slide TM 7