Olin : Fourth Quarter 2021 Earnings Presentation

Fourth Quarter 2021 Earnings Presentation

January 28, 2022

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 statements contained in this presentation that are not statements of historical fact may include forward‐looking statements that involve a number of risks and uncertainties.

We use separate "outlook" sections, reference future phases of Olin's evolution, and use the words "anticipate," "intend," "may," "expect," "believe," "should," "plan," "outlook," "project," "estimate," "forecast," "optimistic", "target" and variations of such words and similar expressions in this presentation to identify such forward‐looking statements. These statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, which are difficult to predict and many of which are beyond our control. Therefore, actual outcomes and results may differ materially from those matters expressed or implied in such forward‐looking statements. All references to expectations and other forward‐looking statements are based on expectations on January 28, 2022. Olin undertakes no obligation to update publicly any forward‐looking statements, whether as a result of future events, new information or otherwise.

Factors that could cause or contribute to such differences include, but are not limited to: sensitivity to economic, business and market conditions in the U.S. and overseas; declines in average selling prices and the supply/demand balance for our products; unsuccessful execution of our strategic operating model which prioritizes Electrochemical Unit (ECU) margins over sales volumes; our reliance on a limited number of suppliers for specified feedstock and services, including third‐party transportation services; our inability to complete future acquisitions or successfully integrate them into our business; failure to control costs and inflation impacts or failure to achieve targeted cost reductions; higher‐than‐expected raw material, energy, transportation, and/or logistics costs; unexpected manufacturing interruptions and outages; the failure or an interruption of our information technology systems; our substantial amount of indebtedness and debt service obligations; the negative impact from the COVID‐19 pandemic and the global response to the pandemic, including without limitation adverse impacts in complying with governmental COVID‐19 mandates; weak industry conditions affecting our ability to comply with our senior secured credit facility covenants; the failure to identify, attract, develop, retain and motivate qualified employees throughout the organization; adverse changes in international markets; declines in global equity markets, interest rates or other significant assumptions used to value the assets and liabilities in, and funding of, our pension plans; adverse conditions in the credit and capital markets; asset impairment charges resulting from the failure to realize our long‐range plan assumptions; new regulations or public policy changes the transportation of hazardous chemicals and the security of chemical manufacturing facilities; changes in, or failure to comply with, legislation or government regulations or policies, including changes regarding our ability to manufacture or use certain products; failure to effectively manage environmental, social and governance (ESG) issues and related regulations, including climate change and sustainability; unexpected outcomes from legal or regulatory claims and procedures; environmental investigation, remediation or other legal proceedings; risks associated with our Lake City U.S. Army Ammunition Plant contract and performance under other governmental contracts; and the other risks detailed in Olin's Form 10‐K for the fiscal year ended December 31, 2020 and in Olin's Quarterly Reports on Form 10‐Q and other reports furnished or filed with the U.S. Securities and Exchange Commission. All of the forward‐looking statements should be considered in light of these factors. In addition, other risks and uncertainties not presently known to Olin or that Olin considers immaterial could affect the accuracy of our forward‐looking statements. The reader is cautioned not to rely unduly on these forward‐looking statements.

Non-GAAP Financial Measures

In addition to U.S. GAAP financial measures, this presentation includes certain non‐GAAP financial measures including EBITDA and Adjusted EBITDA. These

non‐GAAP measures are in addition to, not a substitute for or superior to, measures for financial performance prepared in accordance with U.S. GAAP. Definitions of these measures and reconciliation of GAAP to non‐GAAP measures are provided in the appendix to this presentation.

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Results & Outlook

4Q21 Highlights

• Results matched the guidance provided - flat to slightly down from 3Q21
• • CAPV up, Epoxy down, Winchester down
• Launched Shoot United™ to promote recreational shooting
• Accelerated Olin's share repurchases
• Ended the year at a net debt to Adjusted EBITDA ratio of 1.0 times

1Q22 & FY22 Outlook

• FY2022, all businesses improve over FY2021
• Sequentially in 1Q22: Chemicals ~ flat, Winchester up
• Epoxy margins expand
• Growth vectors materialize in all businesses
• • Organic

- Inorganic	Expanding Our Interlinked Matrix

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Masters of the ECU: Set our ECU rate to optimize Olin for the forward market configuration

Olin matched its market participation to the weak side of the ECU - both sides improved

4Q21

3Q21

Olin Price

4Q20

Strong Side	Weak Side
(Chlorine		)	(Caustic )

Current Market Configuration:

Chlorine remains the stronger

side of the ECU; caustic is improving; Olin is supplying less caustic volume

Supply‐Demand Ratio (i.e. market configuration)

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Olin's Model at Work Entering 2022

• Designed to stop what would have resulted in a negative cycle for Olin
• Using global product liquidity for supply
• Bridging to a more favorable Olin supply/demand balance

		Parlay Volume
		Linchpin Prices
Degree		OLN Capacity
Of
	Utilization
Change
Mid-2021	End-2021	Early-2022

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