longbowslides3062012.htm

Company Overview

All financial data are for the years ending December 31, 2011 and December 31, 2010. Data are presented in millions of U.S. dollars
except for earnings per share on a GAAP basis. 2011 results include a $181 million gain associated with the remeasurement of Olin’s
SunBelt interest, or $1.30 per share. Additional information is available at www.olin.com.

Winchester

Chlor Alkali

Third Largest North American Producer
of Chlorine and Caustic Soda

FY 2011 FY 2010

Revenue: $ 1,389 $ 1,037

Income: $ 245 $ 117

A Leading North American Producer of
Small Caliber Ammunition

FY 2011 FY 2010

Revenue: $ 572 $ 549

Income: $ 38 $ 63

Revenue: $1,961 $1,586

EBITDA: $ 508 $ 188

Pretax Operating Inc.: $ 380 $ 77

EPS (Diluted): $ 2.99 $ .81

FY 2011 FY 2010

Olin Corporation

Investment Rationale

• Leading North American producer of Chlor-Alkali

• Leading producer of industrial bleach with additional growth
opportunities

• Leading producer of burner grade hydrochloric acid

• Favorable industry dynamics for both businesses

• Winchester’s leading industry position

• Significant cost reduction program underway

• Strong balance sheet, positive earnings outlook

• 341st consecutive quarterly dividend declared

Chlor Alkali Segment

ECU = Electrochemical Unit; a unit of measure reflecting the chlor alkali process outputs
of 1 ton of chlorine, 1.13 tons of 100% caustic soda and .03 tons of hydrogen.

North
American
Position

Percent
of 2011
Revenue

#1
Industrial

#1
Merchant

#1
Burner
Grade

50%

10%

26%

Chlor Alkali Manufacturing Process

BRINE + ELECTROLYSIS = OUTPUTS

Caustic Soda - 1.13 Tons

(Sodium Hydroxide)

(Potassium Hydroxide)

Bleach

(Sodium Hypochlorite)

Chlorine - 1 Ton

Potassium Chloride

Sodium Chloride

KOH - 1.59 Tons

HCl

(Hydrochloric Acid)

Hydrogen Gas - .03 Tons

KOH

Caustic Soda

Chlorine

Hydrogen

1.8 Tons Salt &

.5 Tons Water

2.8 Megawatts Electricity

Mercury Transition Plan

• Olin currently operates 2 mercury cell plants representing
approximately 360,000 ECUs or 17% of our total capacity

• By the end of 2012, Olin expects to convert 200,000 ECUs
of mercury cell technology to membrane technology and will
shutdown the remaining 160,000 ECUs

• This project will right size our capacity in the region, service
our local customers with the latest technology, reduce our
electricity costs, and close our highest cost chlor alkali plant

• Estimated cost is $160 million over 2011 and 2012, aided by
$41 million of low-cost Tennessee-sponsored tax-exempt
financing

Capacity Rationalization

Favorable Industry Dynamics

Acquisition
Date

Position

Olin announced capacity reductions expected to be in place by 12/31/2012

Source: CMAI.

Industry Consolidation

1.26 million

tons of capacity

rationalized;
7.3% of 2000

capacity

16,040

17,300

2007

2004

• Acquired by Olin

• 725,000 Short Tons ECU Capacity

• 4.7% of North American capacity

• Acquired by OxyChem

• 859,000 Short Tons ECU Capacity

• 5.5% of North American capacity

Pioneer

Vulcan

2010

• Acquired by Cydsa/Iquisa

• 45,000 Short Tons ECU Capacity

Mexichem

2011

• Olin acquired PolyOne’s 50%
ownership in the SunBelt JV

• 176,000 Short Tons ECU Capacity

PolyOne

2011

• Acquired by PPG

• 70,000 Short Tons ECU Capacity

Equa-Chlor

Diverse Customer Base

Chlorine

Caustic Soda

North American Industry

Olin Corporation

Source: CMAI and Olin 2011 demand. Includes sales of SunBelt.

Chlorine: “Organics” includes: Propylene oxide, epichlorohydrin, MDI, TDI, polycarbonates. “Inorganics” includes: Titanium dioxide and bromine.

Caustic Soda: “Organics” includes: MDI, TDI, polycarbonates, synthetic glycerin, sodium formate, monosodium glutamate. “Inorganics” includes: titanium dioxide, sodium silicates, sodium cyanide.

Bleach Plants

Tacoma, WA

Tracy, CA

Santa Fe Springs, CA

Henderson, NV

St. Gabriel, LA

Augusta, GA

Charleston, TN

Niagara Falls, NY

Becancour,

Quebec

Olin’s Geographic Advantage

Location	Chlorine Capacity (000s Short Tons)
McIntosh, AL	426 Diaphragm
McIntosh, AL - SunBelt	352 Membrane
Becancour, Quebec	297 Diaphragm 65 Membrane
Niagara Falls, NY	300 Membrane
Charleston, TN (1)	226 Mercury
St. Gabriel, LA	246 Membrane
Henderson, NV	153 Diaphragm
Augusta, GA (1)	75 Mercury
Total	2,140

• Access to regional customers including bleach and water treatment

• Access to alternative energy sources

– Coal, hydroelectric, natural gas and nuclear

(1) Announced the conversion of 200,000 tons of mercury cell technology to membrane cell technology at the Charleston, TN facility

and the closure of the mercury cell facility in Augusta, GA, both are expected to be completed by 12/31/12.

Industrial Bleach

• Olin is the leading North American bleach producer with 18% market
share and current installed capacity to service 25% of the market with
low-cost expansion opportunities

• Bleach utilizes both chlorine and caustic soda in an ECU ratio

• Bleach commands a premium price over an ECU

• Demand is not materially impacted by economic cycles

• Regional nature of the bleach business benefits Olin’s geographic
diversity, further enhanced by Olin’s proprietary railcar technology

• In 2012, 3 new HyPure® Bleach investments will add 50% more bleach
capacity to the Olin system, extend shelf life and lower freight costs

• Bleach shipments increased 15% over 2010 levels and bleach volumes
are expected to grow in 2012

Bleach Growth is a Key Objective

• Olin bleach volume delivers steady growth

• Key bleach target segments include water
treatment, consumer products, food, farming
and pool chemicals

• Increased stability and shelf life

• Reduced transportation costs

• Larger shipping radius

• Proprietary Olin advantages

• Potential new category of consumer products

OLIN HYPURE® BLEACH

AND RAILCAR DELIVERY WILL

IMPROVE ACCESS TO THE MARKET

Hydrochloric Acid

• Demand is increasing for HCl, primarily from oil and gas
exploration

• By-product HCl accounts for 75% of the market supply that is
available, but availability is subject to the demand for
urethanes and fluorocarbons

• Currently 25% of HCl market supply is “Burner-grade” or
“on-purpose” HCl

• Burner grade HCl is a reliable source, and while a small cost
component in oil and gas exploration, is critical to the process

• Demand for HCl is currently higher than supply

• Olin HCl pricing and volume outlook is favorable

Growing HCl Demand

North American HCl Supply

• Burner acid is the only growing HCl supply source

• 75% of HCl is supplied by Gulf byproduct producers

• Byproduct HCl availability is less reliable than burner

• Olin is ideally positioned to serve the West & North

North American HCl Demand

• Oil & Gas demand has outstripped supply

• U.S. steel industry demand is recovering

• Diverse demand segments grow with GDP

• 2011 supply shortages upset the market

Source: CEH 2009

Chlor-Alkali Outlook

• 2011 ECU netbacks(1) of $560 were up $85 over 2010 netbacks and we expect
Q1 2012 netbacks to include the 2011 $65 caustic soda price announcement

• A subsequent $80 caustic increase was announced in November 2011 followed
by a $45 price hike in February/March 2012 by all major producers; and a $40
chlorine price increase announcement in late February by Olin

• Q4 2011 operating rates dropped to 70% as demand across all chlorine
consuming groups fell. Q1 2012 operating rates are expected to be 80%

• Bleach shipments increased 15% over 2010 and bleach volumes have
increased quarter over quarter since 2007 reflecting the success of this strategy.
We expect to experience continued growth in 2012

• In 2012, we expect to complete 3 new HyPure® Bleach facilities increasing
our bleach capacity by 50% over current levels

• 2011 Hydrochloric Acid sales increased 12% over 2010 levels reflecting the
growing demand from shale oil & gas exploration

(1) ECU netback = Price of 1 ton of Chlorine + 1.1 x price of 1 ton of Caustic Soda - Freight cost

Winchester Segment

Winchester Strategy

• Cost Reduction

– Centerfire relocation

– Once complete, we
expect $30 million
lower operating costs

– Meaningful savings
begin in 2013

• New Product Development

– Continue to develop
new product offerings

– Maintain reputation as a
new product innovator

• Provide returns in excess of
cost of capital

	Hunters & Recreational Shooters
Products	Retail	Distributors	Mass Merchants	Law Enforcement	Military	Industrial
Rifle	ü	ü	ü	ü	ü	N/A
Handgun	ü	ü	ü	ü	ü	N/A
Rimfire	ü	ü	ü	ü	ü	ü
Shotshell	ü	ü	ü	ü	ü	ü
Components	ü	ü	ü	ü	ü	ü

Brands

Favorable Industry Dynamics

Commercial

• Economic environment leading to personal security concerns

• Fears of increased gun/ammunition control

• New gun and ammunition products

• Strong hunting activity in weak economy, driven by cost/benefit of hunting
for food and increased discretionary time

Law
Enforcement

• Significant new federal agency contracts and solid federal law enforcement
funding

• Higher numbers of law enforcement officers and increase in federal agency
hiring

• Increased firearms training requirements among state and local law
enforcement agencies

Military

• Consistent level of demand from inventory replenishment and training

• Awarded 5 year contract to supply the US Army 5.56mm, 7.62mm and 50
caliber ammunition; expected to generate $300 million in revenues over the
contract term

• 10 year Lake City ammunition bid submitted with partner, BAE Systems

Winchester

• 2011 segment earnings of $38 million represent the third most
profitable year and include $5 million of restructuring charges
associated with the move of centerfire operations to Oxford, MS

• The U.S. Army awarded Winchester a 5 year contract to produce
.50 caliber, 5.56mm and 7.62mm ammunition beginning Q1 2012
providing expected revenues of approximately $300 million

• The expected 15% reduction in demand that typically follows a
surge period did not occur reflecting higher gun ownership levels,
and we expect post-surge earnings to exceed pre-surge levels

• In January, US Munitions, a joint venture between Winchester and
BAE Systems, submitted a proposal to operate the US Army’s
small caliber ammunition plant in Lake City for 10 years

Centerfire Relocation

• The decision to relocate Winchester’s centerfire operations,
including 1,000 jobs, was made on November 3, 2010

• The controlled relocation process is expected to take up to 5 years
to complete assuring high quality product is available for our
customers throughout the transition

• The new facility was opened October 2011 and equipment
relocation began in Q3 2011, currently ahead of schedule

• During Q1, we expect 60% of pistol rounds to be made in Oxford

• Annual operating costs are expected to be reduced by $30 million
once the move is completed, material cost savings are expected to
be realized in second half of 2013

• The net project cost is estimated to be $80 million, of which
approximately $50 million is related to capital expenditures

• In addition to $31 million of grants from MS, $42 million of low-
cost MS tax-exempt debt was made available to Olin

Strong Balance Sheet

• The year end 2011 cash balance of $357 million reflects:

• A $201 million CAPEX program;

• $132 million used to acquire PolyOne’s 50% interest in SunBelt;

• A net $51 million reduction of debt outstanding; and

• $68 million returned to shareholders

• No material debt maturities until 2016 and no debt towers in
excess of $150 million

• The Olin pension plans remain fully funded with no
contributions expected until at least 2013

• 2012 CAPEX is forecast to be in the $215 to 245 million
range which includes:

• completion of the mercury conversion project in Charleston, TN;

• reconfiguration of our Augusta, GA plant;

• construction of three new HyPure® Bleach facilities; and

• continued progress on the Winchester centerfire relocation project

• In 2011, Chlor-alkali’s earnings were more than twice 2010
earnings and Winchester’s earnings were approximately 50%
higher than pre-surge levels

• 2011 EBITDA was the second highest in our history

• Entering 2012, ECU pricing is higher than a year ago

• Higher margin bleach business has met growth targets is
forecast to continue growing market share with the addition
of three new low salt, high strength facilities

• Opportunities for additional HCl volumes exist to meet oil
and gas exploration demand

• 2012 Winchester volumes are starting stronger than expected

• The Oxford centerfire relocation project is on schedule with
the goal of reducing annual expenses by $30 million

Profit Outlook

Forward-Looking Statements

This presentation contains estimates of future
performance, which are forward-looking statements
and actual results could differ materially from those
anticipated in the forward-looking statements. Some
of the factors that could cause actual results to differ
are described in the business and outlook sections of
Olin’s Form 10-K for the year ended December 31,
2011. These reports are filed with the U.S. Securities
and Exchange Commission.