Combination of The Dow Chemical Companys Dow Chlorine Products with Olin March 27, 2015 Andrew N. Liveris Joseph D. Rupp Chairman and Chief Executive Officer Chairman and Chief Executive Officer 1
Agenda Transaction Overview Strategic Alignment Details of New Olin 4
Strategic Benefits of Transaction Creates 7B revenue industry leader in Chlor-Alkali and derivatives Highly complementary to strategic objectives of both companies, which significantly enhances shareholder and customer value Highly…
Dows Portfolio Evolution Steady Drumbeat of Actions Dow Expanded Divestiture Announced Plans to Target to 7B 8.5B Chlorine Exceeded 500MM Products Restructure Costs and Divestiture Sale of Cost Savings Sold Shut Down Assets Actions…
Significant Value Creation for All Shareholders Transaction Overview Formation of 7B revenue Chlor-Alkali and derivatives leader Transaction based on 5B RMT structure for Dow Chlorine Products (DCP) at 8x multiple New Olin to benefit…
Complementary Profiles Dow Olin Chlor-Alkali History 118 yrs 123 yrs Recent Chlorine Strategy Rationalizing Growing Global Chlor-Alkali Capacity* Top 10 Top 10 Regional US & Asset Locations Global Canada Downstream Applications 18…
Transaction Overview Structure and Considerations Reverse Morris Trust structure split-off intention Total value of 5B at 8x multiple, consisting of 2.2B in common stock, 2.0B in cash and cash equivalents, 0.8B in assumed debt and…
Presentation3 Agenda Page Merger of Dow Chlorine Products Business with Olin Corporation March 26, 2015 [CLIENT NAME]
Diversifies Olins Business Mix 2014 pro forma EBITDA by business (bn) Dow Chlorine Products Olin Pro forma NewCo Global Chemical Chemical Chlorinated Distribution Epoxy Distribution 0% Chlor Alkali 4% 0% 1% Organics Global 7%…
Creates a Leader in Chlorine-Based Products Top chlorine producers worldwide (kMT) Chlorine global capacity: 90,000 kMT 5,647 3,730 3,430 2,363 2,249 2,249 1,917 1,886 1,719 DCP1 + Post-separation2 DCP1 Source:…
Significant Cost Synergies with Strategic Opportunities Upside Synergies breakdown Expected value Increased procurement efficiencies Elimination of duplicate terminals and optimization of freight to terminals Logistics & procurement…
Significant Cash Flow to Drive De-Leveraging Total debt / Pro forma LTM EBITDA (mm)1 Commentary Olin has long track-record of prudent capital structure management Management remains committed to conservative 3.0x financial…
Summary of Dow Value Drivers Dow exceeds its divestment target of 7B-8.5B Continued execution of ongoing strategic objectives to deliver increasing returns through a narrower, more targeted portfolio of market-aligned businesses…
Appendix 16
Pro Forma Global Operating Footprint Plaquemine, LA Russellville, AR Rheinmnster, Terneuzen, CA, EDC Cell assembly and Germany Netherlands Perc maintenance CER Cumene Freeport, TX Brine, Power CA, VCM, EDC Epi/Allyl, LER, CER…
RMT Transaction Value Overview Units = Billions RMT Value Consideration in Debt/Cash 2.0 Assumptions of Pension and Debt 0.8 Subtotal Cash/Debt/Pensions 2.8 Consideration in stock* 2.2 Pre-Tax Consideration for DCP 5.0 2014…
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