Core Viewpoint - Olin Corporation will review its first quarter 2025 financial results on May 2, 2025, at 9:00 a.m. Eastern time, followed by a Q&A session [1] Conference Call & Webcast Details - U.S. callers can access the conference call toll-free at (877) 883-0383, while Canadian callers can dial (877) 885-0477, and international callers can reach (412) 902-6506, using pass code 4655364 [2] - The call will be webcast live, and participants are encouraged to pre-register or access the webcast on the company's website [2] - A replay of the conference call will be available for one year on the company's website, with a telephonic replay available for 7 days starting at 12:00 p.m. Eastern time [3] Company Description - Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and a major U.S. manufacturer of ammunition [4] - The chemical products include chlorine, caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid [4] - Winchester, a division of Olin, produces and distributes various types of ammunition, including sporting, law enforcement, and military ammunition [4]

Core Viewpoint - Olin Corporation has appointed General Edward Daly to its Board of Directors, effective March 5, 2025, to enhance its strategic direction and oversight in the defense and logistics sectors [1][5]. Company Overview - Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and a prominent U.S. manufacturer of ammunition, producing a variety of chemical products including chlorine, caustic soda, and various types of ammunition [5]. Appointment Details - General Daly, a retired U.S. Army General with over 36 years of service, was appointed to the Compensation Committee of Olin's Board, bringing extensive expertise in defense procurement and logistics [1][2]. - His last role was as the 20th Commanding General of the U.S. Army Materiel Command, overseeing a budget exceeding $50 billion and managing 190,000 personnel across the U.S. and internationally [2]. General Daly's Background - General Daly has founded Virtus 9, a startup focused on U.S. national security, and serves as President of Daly Consulting & Logistics, along with advisory roles in several companies [3]. - He holds degrees from West Point, Gonzaga University, and the U.S. Army War College, and is noted as the only career Logistics 4-Star General to graduate from West Point since its establishment [4]. Strategic Importance - Olin's President & CEO, Ken Lane, expressed enthusiasm about General Daly's appointment, highlighting his military career and understanding of global trade and security as valuable assets for guiding Olin's growth [5].

Core Viewpoint - Olin Corporation is conducting a private offering of $600 million in senior notes to refinance existing debt and improve its financial position [1][2]. Group 1: Offering Details - The offering consists of $600 million aggregate principal amount of 6.625% senior notes due in 2033, priced at 100% of the principal amount [1]. - The closing of the offering is expected on March 14, 2025, subject to customary closing conditions [1]. Group 2: Use of Proceeds - The net proceeds from the offering will be used to redeem $500 million of 5.125% senior notes due 2027, refinance the existing revolving credit facility, and repay borrowings under the 9.500% senior notes due 2025 [2]. - Additional uses include refinancing an existing term loan facility and covering related fees and expenses [2]. Group 3: Company Overview - Olin Corporation is a leading global manufacturer and distributor of chemical products, including chlorine, caustic soda, and various other chemicals, as well as a major U.S. manufacturer of ammunition [6].

Company Overview - Olin Corporation is a leading vertically integrated global manufacturer and distributor of chemical products and a prominent U.S. manufacturer of ammunition [6] - The chemical products produced include chlorine, caustic soda, vinyls, epoxies, chlorinated organics, bleach, hydrogen, and hydrochloric acid [6] - Winchester, a division of Olin, produces and distributes various types of ammunition and related components [6] Offering Details - Olin Corporation intends to offer $600 million aggregate principal amount of senior notes due 2033 [1] - The Senior Notes will be Olin's senior unsecured obligations and will not be guaranteed by any subsidiaries on the issue date [1] - The net proceeds from the Offering will be used to redeem $500 million of 5.125% Senior Notes due 2027, refinance existing credit facilities, and pay related fees and expenses [2] Refinancing Transactions - The Offering is part of a broader refinancing strategy that includes redeeming the 2025 Notes and refinancing existing revolving credit and term loan facilities [2] - The Offering is not conditioned on the closing of the Replacement Credit Facilities [2] Regulatory Compliance - The Senior Notes will be offered in a private offering exempt from the registration requirements of the Securities Act of 1933 [3] - The offering will be limited to qualified institutional buyers and non-U.S. persons outside the United States [3] Market Conditions - The ability to consummate the Offering and Refinancing Transactions is subject to prevailing market conditions [10]

Financial Performance - Olin Corporation reported net income of $105.0 million for the year ended December 31, 2024, a decrease of 77.7% compared to $452.0 million in 2023[320]. - Total sales for Olin Corporation were $6,540.1 million in 2024, down 4.3% from $6,833.0 million in 2023[320]. - The company's operating income fell to $296.5 million in 2024, a decline of 58.3% from $712.1 million in 2023[320]. - Olin Corporation's total assets decreased to $7,579.1 million as of December 31, 2024, compared to $7,713.2 million in 2023, reflecting a reduction of 1.7%[318]. - The company's total liabilities increased to $5,523.7 million in 2024, up from $5,444.9 million in 2023, representing a rise of 1.4%[318]. - Olin Corporation's retained earnings decreased to $2,357.5 million in 2024, down from $2,583.7 million in 2023, a decline of 8.7%[318]. - The total equity of Olin Corporation decreased to $2,055.4 million in 2024 from $2,268.3 million in 2023, reflecting a decline of 9.4%[326]. - Olin Corporation's net income for 2024 was $105.0 million, a decrease of 76.8% compared to $452.0 million in 2023[328]. - Common stock repurchased and retired in 2024 amounted to $300.3 million, a reduction of 57.8% compared to $711.3 million in 2023[328]. - The company declared dividends of $0.80 per share for 2024, consistent with the previous two years[326]. Segment Performance - Chlor Alkali Products and Vinyls segment represented 55% of 2024 sales, Epoxy segment 20%, and Winchester segment 25%[9]. - The Epoxy segment benefits from integration into low-cost feedstocks, producing a full range of epoxy materials and precursors[29]. - The Epoxy segment serves diverse applications focused on sustainability, including wind energy and protective coatings, primarily in North America and Western Europe[30]. - The company maintains a reliable supply of key raw materials for the Epoxy segment, including chlorine, caustic soda, cumene, and propylene[32]. - The Chlor Alkali Products and Vinyls segment is one of the largest global marketers of caustic soda, allowing cost-effective supply to customers worldwide[14]. - Olin's Winchester segment focuses on expanding market participation in higher value add platform products to align with growing end-use markets[37]. Joint Ventures and Acquisitions - The joint venture Blue Water Alliance (BWA) with Mitsui began operations in 2023, focusing on globally traded caustic soda and EDC, with Olin holding a 51% interest[19]. - A new joint venture, Hidrogenii, LLC, was launched with Plug Power, aiming to construct a 15-ton-per-day hydrogen liquefaction plant expected to start operations in early 2025[20]. - Olin acquired the assets of White Flyer Targets, LLC for $63.9 million, enhancing its position in the recreational shooting market[39]. - Olin signed a definitive agreement to acquire AMMO, Inc.'s small caliber ammunition manufacturing assets for $75 million, expected to close in Q2 2025[395]. Market and Sales - Winchester's estimated backlog was approximately $1,426 million as of January 31, 2025, with 70% expected to be fulfilled in 2025[54]. - In 2024, Winchester was awarded contracts to manufacture 5.56mm, 7.62mm, and .50 caliber ammunition, maintaining its leading position as a supplier to the U.S. military[46]. - Approximately 29% of Olin's 2024 sales were generated outside the U.S., with 12% from the Winchester segment[50]. - Winchester's new ammunition products received multiple awards, including the "Ammunition Product of the Year" from American Rifleman magazine in 2025 and 2022[42]. - Winchester's sales to U.S. government agencies accounted for approximately 11% of total sales in 2024[53]. - The company has strong relationships with traditional dealers, distributors, and mass merchants, enhancing its market reach[41]. Cost Management and Operational Efficiency - The company emphasizes cost management and continuous improvement to maintain a strong competitive position in the chlor alkali industry[26]. - The Epoxy segment's production economics benefit from its integration into chlor alkali and aromatics, providing operational flexibility[32]. - Olin's Epoxy segment is focused on optimizing cost positions in the Americas and Europe through supply chain improvements[36]. - The company promotes a culture of continuous improvement with a "Be Better Today" mindset to drive down costs[49]. Financial Liabilities and Assets - Long-term borrowings as of December 31, 2024, totaled $2,842.2 million, with $1,063.4 million issued at variable rates[293]. - The company maintained open positions on commodity contracts with a notional value of $204.5 million as of December 31, 2024[291]. - A 10% increase in commodity prices would lead to a $20.5 million increase in inventory costs, offset by related hedging instruments[291]. - Unfavorable currency movements of 10% would negatively affect the fair values of derivatives held to hedge currency exposures by $13.4 million[292]. - Environmental liabilities recorded by the company amounted to $156.5 million as of December 31, 2024[313]. - The company incurred restructuring charges of $33.3 million in 2024, a significant decrease from $89.6 million in 2023[320]. - The company incurred charges of $30.2 million, $30.1 million, and $24.2 million for investigatory and remedial efforts in 2024, 2023, and 2022, respectively[73]. Research and Development - Research expenditures were $18.4 million in 2024, compared to $20.0 million in 2023 and $18.3 million in 2022[67]. Corporate Responsibility - The company is committed to corporate responsibility, focusing on environmental, health, safety, and security stewardship[74]. Employee and Labor Relations - As of December 31, 2024, the company had a total of 7,676 employees, with 86% located in the United States[66]. - The company has no labor agreements expiring in Canada and two agreements expiring in the U.S., representing approximately 2% of the global workforce[66].

Core Viewpoint - The Schall Law Firm is investigating Olin Corporation for potential violations of securities laws, focusing on misleading statements and undisclosed information that may have affected investors [1][2]. Company Financial Performance - Olin Corporation reported its Q4 2024 financial results on January 30, 2025, and provided guidance for Q1 2025 that was significantly below analysts' consensus estimates [2]. - The company cited "challenging industry conditions" as commercial customers are reducing elevated inventories and facing softer consumer demand [2]. - Olin also acknowledged being "significantly challenged by subsidized Asian competition," indicating external pressures impacting its business [2].

Group 1 - Olin Corporation is under investigation for potential securities fraud and unlawful business practices involving its officers and directors [1] - In its fourth quarter 2024 financial results, Olin reported adjusted EBITDA guidance for Q1 2025 of $150 million to $170 million, significantly below the analyst consensus estimate of $227.1 million [2] - The company cited challenging industry conditions, including reduced consumer demand and competition from subsidized Asian firms, as factors affecting its performance [2] Group 2 - Following the disappointing financial results, Olin's stock price dropped by $2.89 per share, or 8.87%, closing at $29.29 on January 31, 2025 [2]

Core Viewpoint - Olin Corporation reported a decline in net income for Q4 2024, with earnings of $10.7 million or 9 cents per share, down from $52.9 million or 43 cents in the prior year, although it beat the Zacks Consensus Estimate of a loss of 1 cent per share [1][5] Financial Performance - Adjusted EBITDA for Q4 2024 was $193.4 million, a decrease from $210.1 million in the same quarter last year [1] - Revenues for Q4 2024 were $1,671.3 million, exceeding the Zacks Consensus Estimate of $1,608.8 million, and reflecting a year-over-year increase of approximately 3.5% [2] - For the full year 2024, net sales were $6,540.1 million, down from $6,833 million in 2023, with earnings per share dropping to 91 cents from $3.57 [5] Segment Performance - Chlor Alkali Products and Vinyls segment revenues increased by around 5.3% year-over-year to $953.7 million, surpassing the Zacks Consensus Estimate of $877 million, driven by higher volumes and pricing [3] - Epoxy segment revenues decreased by approximately 9.8% year-over-year to $282.2 million, missing the consensus estimate of $295 million due to lower volumes and pricing [4] - Winchester segment revenues rose by about 10.1% year-over-year to $435.4 million, exceeding the consensus estimate of $404 million, attributed to higher military sales [4] Cash Flow and Share Repurchase - In 2024, Olin repurchased 5.9 million shares for $300.3 million and ended the year with approximately $1.2 billion in liquidity [6] - Cash flow from operating activities decreased significantly from $974.3 million in the prior year to $503.2 million in 2024 [6] Future Outlook - Olin plans to allocate funds towards an optimized core asset strategy aimed at reducing structural costs by over $250 million by 2028, with anticipated capital expenditures between $225 million and $250 million in 2025 [7] - The company expects Q1 2025 adjusted EBITDA to range between $150 million and $170 million and plans to use operational cash flows to finance the acquisition of AMMO Inc.'s ammunition assets in 2025 [7] - Due to seasonal working capital fluctuations, net debt is projected to increase in the first half of 2025 [7] Stock Performance - Olin's stock has declined by 41.2% over the past year, contrasting with a 5.1% growth in the industry [8]

Financial Data and Key Metrics Changes - The company experienced an overall sequential benefit of approximately $93 million from lower Hurricane Beryl impacts, with adjusted EBITDA for Q4 2024 being positively influenced by this factor [10][27]. - The year-end net debt to adjusted EBITDA ratio was approximately 2.7 times, with net debt increasing by approximately $167 million from year-end 2023 [30][31]. Business Line Data and Key Metrics Changes - Chlor Alkali Products and Vinyls (CAPV) sales were up 9% sequentially due to higher volume and improved pricing, benefiting from lower-than-expected Hurricane Beryl spending [12][13]. - Epoxy sales were roughly flat sequentially, with improved resin pricing offset by seasonally weaker demand in the US and Europe [16]. - Winchester sales were flat sequentially, with military demand offsetting lower commercial ammunition sales due to inventory destocking by retailers [19][21]. Market Data and Key Metrics Changes - Global caustic soda remains tight, with European variable costs rising and Asian demand showing improvement [13]. - The company expects tightness in the caustic soda market to continue through the first quarter, influenced by seasonal demand patterns [13]. Company Strategy and Development Direction - The company aims to achieve greater than $250 million in cost reductions by 2028, with an expected $20 million to $30 million of these savings in 2025 [8][9]. - Olin plans to enter the US PVC market via a tolling partnership, which is expected to unlock incremental caustic soda volume and facilitate strategic assessment of the PVC market [14][70]. Management's Comments on Operating Environment and Future Outlook - Management does not foresee significant short-term improvement in the macro demand environment and expects first quarter adjusted EBITDA to be in the range of $150 million to $170 million [36][37]. - The company remains committed to maintaining a strong balance sheet and investment-grade credit ratings, focusing on cash generation and cost discipline [34][35]. Other Important Information - The company announced a definitive agreement to acquire AMMO, Inc.'s small caliber ammunition manufacturing assets, which is expected to be immediately accretive to adjusted EBITDA [22][23]. - The acquisition is anticipated to achieve synergy benefits of $40 million within three years after closing [24][82]. Q&A Session Summary Question: Can you provide detail about your volume outlook for chlorovinyls in the first quarter? - Management indicated that lower volumes in Q1 are related to a turnaround and customer impacts from Winter Storm Enzo, but they expect strong demand for caustic soda [41][45]. Question: What happened in the last two weeks of the year that led to higher adjusted EBITDA? - Management noted that lower share price provided a $10 million tailwind and Hurricane Beryl spending came in about $8 million less than expected [49][50]. Question: What is your outlook on supply for Chlor Alkali? - Management believes that capacity coming out is occurring sooner than new capacity being added, leading to a balanced supply-demand outlook [58][60]. Question: How do you plan to tackle the upcoming debt and tax payments? - The company plans to pay the $80 million international tax payment in the first half of 2025 and expects to use its revolver to cover the $100 million debt due [135]. Question: What are your thoughts on the dynamics in the caustic soda export market? - Management sees firm demand and believes that export pricing for caustic soda has hit a bottom, which will support domestic pricing [126][127]. Question: How do you expect to improve EBITDA in 2025? - Management plans to focus on cost control and expects improvements in Winchester and seasonal recovery in other segments as the year progresses [92][95].

4Q24 & FY24 Earnings Call J A N U A R Y 3 1 , 2 0 2 5 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, forecasts of future results, and current expectations, estimates and projections about the markets and economy in which we and our various segments operate. The st ...