OLIN Corp Q4 FY2024 earnings call

• Value Creation Strategy: At December Investor Day, laid out strategy to optimize core businesses, maintain value-first commercial approach, and streamline assets for >$250M cost reductions by 2028, expecting $20-$30M savings in 2025. Also discussed growing core via adjacent high-return options and disciplined capital allocation.
• Chlor Alkali and Vinyls: CAPV sales up on higher volume and pricing, Hurricane Beryl costs lower; caustic soda tightness continues, entering PVC market via tolling partnership with first sales in first quarter; Gulf Coast plants weathered winter storm but some customers affected.
• Epoxy: Sales flat with improved pricing offset by seasonal demand; successful turnaround at Stade, Germany; first quarter demand expected to improve; anti-dumping concerns for Epoxy.
• Winchester: Sales flat, military demand strong, commercial weak; acquisition of AMMO, Inc.'s assets, expected synergies.

Chlor Alkali Products and Vinyls (CAPV): Sales were up 9% sequentially due to higher volume and improved pricing. Final Hurricane Beryl spending came in approximately $8 million below expectation during the quarter. Global caustic soda remains tight, with tightness expected to continue through the first quarter. Olin announced intention to enter US PVC market via tolling partnership, with initial shipments received and first sales in first quarter. Gulf Coast plants weathered Winter Storm Enzo but some customers were affected, causing a slight headwind in first quarter. Epoxy: Sales were roughly flat sequentially, with improved resin pricing offset by seasonally weaker demand in US and Europe. Fourth quarter Epoxy adjusted EBITDA increased by more than 50% sequentially. Successful turnaround at Stade, Germany facility completed safely, on time, and on budget. First quarter expected improving demand, but Asian Epoxy producers facing higher feedstock and freight costs with unfairly subsidized resin flowing into US and Europe, with anti-dumping decisions expected in first half. Winchester: Fourth quarter sales flat sequentially, growth of lower margin domestic and international military demand offset by lower commercial ammunition sales due to retailer destocking. Strong domestic and international military demand, White Flyer clay targets robust with ECO FLYER line launching soon. Acquisition of AMMO, Inc.'s assets is immediately accretive to adjusted EBITDA, with expected $40 million synergy benefit within three years, expected to close in second quarter.

• First quarter 2025 adjusted EBITDA expected in range of $150 million to $170 million.
• Expect Winchester to improve in back half of 2025 as inventory destocking finishes and consumer demand picks up.
• Entering US PVC market via tolling partnership with first sales in first quarter.
• Anti-dumping decisions for Epoxy not built into forecast as they need to be finalized.

• Factors causing actual results to differ from projections as described in Risk Factors section of Form 10-K.
• Potential impact of anti-dumping decisions on Epoxy earnings.
• Supply-demand dynamics in Chlor Alkali with capacity additions and removals.
• Impact of customer inventory destocking on Winchester's commercial sales.

Q: When Winchester will outpace input cost increases with price increases?

A: Expect Winchester to improve in back half of year as inventory works out and consumer demand picks up.

Q: Data on retail sales vs sell into retail for Winchester?

A: Use multiple data sources including gun registrations, sales, and close customer relationships to estimate inventories and outlook.