Wofford College

1. Business Description

2. Industry and Competitive Analysis

3. Financial Analysis

4. Valuation

5. Key Investment Risks

Presentation Outline

Investment Summary

$32 Target Price = 29% Decrease

SELL

Excessive 2015 EPS Forecasts

Lack of Competiti

ve Advantag

es

Limited Financial Flexibility

Excess IndustryCapacity

2014 Revenues

Chlorovinyls$2.93 B (64%)

Building Products$0.88 B (19%)

Aromatics$0.76 B (17%)

CumenePhenolAcetone

Caustic SodaChlorinePVC ResinCompounds

2014 Operating Income

Building Products$36 M (17%)

Aromatics-$1 M (0%)

Chlorovinyls$174 M (83%)

Business Description

SidingPipeWindows/DoorsMouldings

Industry Analysis

Porter’s Five Forces

1. Level of Rivalry High

2. Barriers to Entry Medium

3. Threat of Substitutes High

4. Customer Bargaining Power Medium

5. Supplier Bargaining Power Low

Competitive Analysis

AXLL Competitive Advantages

1. Vertical Integration ?2. Low-Cost Supplier ?3. Lack of International

Production ?

AXLL Median of 11 Competitors Market

Net Profit Margin 2.5% 6.9% 9.0%

ROIC 4.4% 9.0% 11.8%

Rank ECU b Capacity VCM Capacity Resin Capacity

1 Dow c (25%) Occidental (30%) Shintech (31%)

2 Occidental (22%) Axiall (18%) Occidental (20%)

3 Axiall (16%) Shintech (17%) Formosa (17%)

4 Olin c (13%) Formosa (15%) Axiall (14%)

5 Shintech (6%) Westlake (8%) Westlake (9%)

Share of N.A. a Production Capacity

AXLL provides 3% of 90 million global ECU/year capacity

a N. A. = North American

b ECU= 1 unit of Chlorine and 1.1 units of Caustic

c Olin has agreed to acquire the chlorine business of Dow

Source: IHS

Pros: 1. Doubling of Chlorovinyls Segment

2. Anticipated Synergies

Cons: 3. $1.0 B Debt Financially Constrained

4. $1.8 B Equity Doubling Share Count

5. Total Revenue Increase = only 40%

6. Margin Reductions = Excessive Price

2013 Acquisition of Eagle Spinco

Revenue by Segment ($ Billions)

2011 2012 2013 2014 $-

$500,000.0

$1,000,000.0

$1,500,000.0

$2,000,000.0

$2,500,000.0

$3,000,000.0

$3,500,000.0

$4,000,000.0

$4,500,000.0

$5,000,000.0

Building ProductsAromaticsChlorovinyls

(Includes 2013 Acquisition)

Operating Margins by Segment

2011 2012 2013 2014-2%

0%

2%

4%

6%

8%

10%

12%

14%

16%

Chlorovinyls

Aromatics

Building Products

Axiall

2011 2012 2013 20140.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

5th

5th

Axiall w/o Synergies

Pro Forma Operating Margins

Axiall

IndustryMedian

(w/o Axiall)12.3%

Axiall Chlorovinyls Segment

11th

10th

8th

10th 4.2%

8th

10th 5.2%

Rankings are out of 12 chemical companies.

1.8%

EPS Trends

*Excludes one-time acquisition expenses & write-downs

2011 2012 2013 2014$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

$3.0

$3.5

Reported EPS

Pro Forma EPS

Debt Levels*

2012 2013 2014

TIE 4.10 4.10 3.00

Debt/EBITDA

1.68 2.60 3.64

*Rated Non-Investment Grade (Moody’s Ba1-

Upgraded from Ba3 on 2/19/2015)

Three Methods $32 Price Target

1.DCF Analysis $30

2.Forward EV/EBITDA Multiple

$34

3.Forward P/E Multiple $31

Valuation Methodologies

DCF Analysis

DCF Key Assumptions

Beta 1.43

Cost of Debt 4.6%

Tax Rate 31.0%

Terminal Growth 2.0%

WACC (Initial) 8.2%

WACC (Ending) 9.6%

Selected Multiples =

Medians of 11 Competitors

Selected Multiples

Forward EV/EBITDA

6.3x

Forward P/E 12.7x

2015 Base Case

Revenue Growth 3.2%

Operating Profit Growth*

88.9%

2016 - 2021Average Growth

Revenue 2.6%

Operating Profit

2.6%

Base Case( 50% Weight )

Optimistic Case

(20% Weight)

Pessimistic Case

(30% Weight)

• Increased Revenue Growth

• Higher Operating Margins

• Reduced Revenue Growth

• Lower Operating Margins

AnalysisScenario

*66.5% versus Pro Forma Op.

Pr.

Price Target $32 (29% Decrease)

3 Valuation Methods, 3 Scenarios per Method$32 Target

Price

P/E

EV/EBITDA

DCF

$5 $15 $25 $35 $45 $55 $65

$13 $55

$28 $42

$23 $42

1.Cyclical Nature of Industry

2.Growth Forecasts for Housing Market

3.Excessive EPS Growth Forecasts

Key Investment Risks

1. Cyclical Nature of Industry

20052007

20092011

2013$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

Net Sales (Billions)

20052007

20092011

2013-300

-200

-100

0

100

200

Net Income (Millions)

2. Housing Starts: A New Normal

20052007

20092011

2013$0.0

$1.0

$2.0

$3.0

$4.0

$5.0

Net Sales (Billions)

20052007

20092011

2013-300

-200

-100

0

100

200

Net Income (Millions)

20002002

20042006

20082010

20122014

0.0

0.5

1.0

1.5

2.0

2.5

Housing Starts (Millions)

20002002

20042006

20082010

20122014

$28

$29

$30

$31

$32

Per Capita Income (T-housands)

3. Excessive EPS Growth Forecasts

2015 Analysts' Projections as of Jan.

2015 Analysts' Current Projections

2015 Wofford Team Projection

2014 Pro Forma

2014 GAAP Reported

$0.00 $2.00 $4.00 $6.00 $8.00

$2.94$2.23

$2.35 $4.55

$2.47

$1.32

$0.65

EPS Forecast Change vs. Stock Price Change

Sep-14 Oct-14 Jan-15 Feb-15 Mar-15 Apr-1560%

70%

80%

90%

100%

110%

120%

$2.47

$45.30$46.05$46.31

$44.25

$42.47$39.82

$3.65

$3.33

$3.04$3.01

$2.69$2.55

2015 Avg. EPS Forecast

AXLL Stock Price

Price Target: $32 (29% Decrease)

Key Drivers:

1. High EPS Projections Built into Stock

Price

2. Lack of Competitive Advantages

3. Acquisition Limited Financial Flexibility

4. Excess Industry Capacity

Recommendation: SELL

Victoria (Presentation)1. Sensitivity Analysis vs. $32 Target2. Cost of Capital & Scenario Weightings 3. Multiple Analysis and Company Valuation 4. Assumptions5. Analysis of Competitors’ MultiplesWhit (Presentation)6. Growth in Housing Starts7. 2015 EPS Growth8. Why the Stock Price is not declining9. Analyst CoverageJohn (Presentation)10. The Better Investment: DOW11. Comparable Company Profit Ratios Analysis12. Financial RatiosKatherine (Presentation)13. Tax Rate Calculation14. Overpriced Acquisition15. SynergiesAL (Presentation Beg, Presentation End)16. 4Q Earnings Report17. Assessment of Management

Appendix: Table of Contents

Variable changed

Old Value

New Value

New SP

$ Change in Stock

Price

% Change in Stock

Price

Beta 1.43 1.70 $30 $2 6.3%

Cost of Debt 4.62% 5.62% $31 $1 3.1%

Terminal Growth 2.0% 3.0% $33 $1 3.1%

Revenue Growth +1%/year

Var Var $35 $3 9.4%

Operating Margins +1%/year

Var Var $38 $6 18.8%

Tax Rate (– 5%) 31% 26% $34 $2 6.3%

No Change in Risk-free rate Incr. Stays

same $34 $2 6.3%

Sensitivity Analysis vs. $32 Target

Cost of Capital Calculations: Base Allowance for Changing WACC due to Changing Interest Rates

Debt Ratio (calc. below) 31.44% 31.44% 31.44% 31.44% 31.44% 31.44% 31.44%Tax Rate 31.35% 29.00% 28.00% 28.00% 28.00% 28.00% 28.00%Equity Ratio (calc. below) 68.56% 68.56% 68.56% 68.56% 68.56% 68.56% 68.56%Cost of Common Equity (using CAPM) 10.54% 10.79% 11.04% 11.29% 11.54% 11.79% 12.04%Pretax Cost of Debt (from below) 4.62% 4.87% 5.12% 5.37% 5.62% 5.87% 6.12%After-tax Cost of Debt 3.17% 3.46% 3.69% 3.87% 4.05% 4.23% 4.41%Pref. Stock Ratio (calc. below) 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%

Cost of Capital 8.22% 8.49% 8.73% 8.96% 9.18% 9.41% 9.64%

Assumptions: Incr. in IRs 0.25% 0.25% 0.25% 0.25% 0.25% 0.25%Terminal Growth Rate 2.00%Risk-free Rate (10-yr. US T-Bond) 2.25% 2.50% 2.75% 3.00% 3.25% 3.50% 3.75%Market Risk Premium (Historical Avg.) 5.80% 5.80% 5.80% 5.80% 5.80% 5.80% 5.80%Cost of Debt 4.62% 4.87% 5.12% 5.37% 5.62% 5.87% 6.12%Cost of Preferred StockBeta 1.43 1.43 1.43 1.43 1.43 1.43 1.43

Capital Weightings: Scenario: WeightingCommon Stock Price $42.17 Base $30.32 50%# of Shares Outstanding 70,988.1 Optimistic $54.79 20%Market Value of Equity 2,993,568 68.56% Pessimistic $12.98 30%

Value of Debt from Balance Sheet 1,372,784 Target $30.01Debt Value of Operating Leases 270 Total Debt Value 1,373,054 31.44%

Value of Preferred Stock 0.00%

Total Capital 4,366,622 100.0%

Cost of Capital & Scenario Weightings

Multiple Analysis and Company Valuation

Forward

Projected CompetitorCase 2015E Median Implied Less: Implied Diluted Implied

Scenario EBITDA Multiple Weighting Enterprise Value Net Debt Equity Value Shares Share PriceBase Case (50%) $560,455 6.3x 50% $3,530,867 ($1,136,691) $2,394,176 70,635 $33.90

Optimistic Case (20%) $648,588 6.3x 20% $4,086,104 ($1,136,691) $2,949,413 70,635 $41.76Pessimistic Case (30%) $489,976 6.3x 30% $3,086,849 ($1,136,691) $1,950,158 70,635 $27.61

$33.58

Competitor

Median Pro Forma Implied Less: Implied Diluted Implied 2014 EBITDA Multiple 2014 EPS Enterprise Value Net Debt Equity Value Shares Share Price

Base Case EV/TTM EBITDA $451,764 7.3x $3,297,877 ($1,136,691) $2,161,186 70,635 $30.60Trailing P/E 14.8x $1.30 $19.24

Forward

Projected Competitor Weight WeightCase 2015E Median Implied 50% EV/EBITDA 33.58$ 50% Base Case 30.32$

Scenario EPS Multiple Weighting Share Price 50% P/E 30.99$ 20% Optimistic Case 54.79$

Base Case (50%) $2.47 12.7x 50% $31.39 Target Price 32.28$ 30% Pessimistic Case 12.98$

Optimistic Case (20%) $3.26 12.7x 20% $41.40 Target Price 30.01$

Pessimistic Case (30%) $1.84 12.7x 30% $23.37

$30.99 Weight Weight

33% EV/EBITDA 33.58$ 50% Base Case 31.84$ Both Multiples Methods Combined: Base $32.64 33% P/E 30.99$ 20% Optimistic Case 45.94$

Optimistic $41.58 33% DCF 30.01$ 30% Pessimistic Case 21.30$ Pessimistic $25.49 Target Price 31.50$ Target Price 31.50$

Multiples Proj. $32.28 -27.96% 43.72$ Stock Price 01/21/2015 -27.96%

Incr. / (Decr.) Incr. / (Decr.)

Note: EPS and EBITDA are based on amounts excluding restructuring costs.

50% 50%Multiples Combined: EBITDA P/E Combined

Base Case (50%) $33.90 $31.39 $32.64Optimistic Case (20%) $41.76 $41.40 $41.58

Pessimistic Case (30%) $27.61 $23.37 $25.49

Weighted Average $33.58 $30.99 $32.28

DCF Price

Valuation Implied by EV/EBITDA

Valuation Implied by P/EMultiples Price

EV/TTM EBITDA and Trailing P/E

Overall Price Projection Scenarios

AssumptionsProjected Growth Rates

1 2 3 4 5 6 7

Chlorovinyls 3.5% 3.3% 3.0% 2.8% 2.5% 2.5% 2.5%

Aromatics 1.0% 1.0% 1.0% 1.0% 1.0% 1.0% 1.0%

Building Products

4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%

Optimistic: 1.0% increase from base case; same as base case; 2.0% increase from base

Pessimistic: 1.0% decrease from base case; same as base case; 1.0% decrease from base

Projected Operating Income Margins1 2 3 4 5 6 7

Chlorovinyls 9.8% 9.8% 9.8% 9.8% 9.8% 9.8% 9.8%

Aromatics 2.0% 1.8% 1.5% 1.5% 1.5% 1.5% 1.5%

Building Products

3.5% 3.5% 3.5% 3.5% 3.5% 3.5% 3.5%

Optimistic: Avg of two highest %; same as base case; 1.5% increase from base casePessimistic: 2.0% decrease from base case; same as base case; 0.5% decrease from

base

Periodic Diluted PE from Cont OpsShares Market Ent EV/

Out. Cap. Value TTM Forward TTM

Company/Symbol (Mil.) (Mil.) (EV) P/E P/E EBITDA

Albemarle Corp ALB US 80 $4,470 $4,950 14.8x 12.4x 7.0x

Calgon Carbon Corp CCC US 51 $1,040 $1,100 22.0x 17.8x 10.9x

Huntsman Corp HUN US 240 $5,330 $9,350 13.3x 8.1x 7.3x

Kraton Performance Polymers Inc KRA US 33 $640 $968 26.0x 12.8x 6.8x

Lyondellbasell Industries NV LYB US 549 $37,260 $45,480 8.8x 8.5x 6.1x

Methanex Corp MX CN 96 $4,160 $6,360 11.3x 10.5x 7.2x

Minerals Technologies Inc. MTX US 34 $2,150 $3,620 23.1x 13.7x 14.1x

Olin Corp OLN US 79 $1,730 $2,670 15.1x 12.7x 6.3x

Sensient Technologies Corp SXT US 50 $2,760 $3,240 37.0x 17.4x 12.0x

The Dow Chemical Co DOW US 133 $50,740 $67,950 14.3x 13.1x 8.5x

Westlake Chemical Corp WLK US 133 $7,680 $8,200 11.6x 10.4x 7.4x

Competitor MEAN 134 $10,724 $13,990 17.9x 12.5x 8.5x

Competitor MEDIAN 80 $4,160 $4,950 14.8x 12.7x 7.3x

Axiall Corp AXLL US 70 $3,320 $4,710 25.2x 13.9x 8.0x

P/E

Analysis of Competitors’ Multiples

Pro Growth:

1. Prior Levels

2. Increasing Credit Availability

Con Growth:1. Lax Lending Artificial Bubble2. Decline in Per Capita Income3. Low Mortgage Rates Will

Increase4. Young: Living with Parents,

More Urban, Delaying Family, More Renters, Desire Mobility & Flexibility, Higher Student Debt

5. Baby Boomers: Downsizing, Assisted Living

= Less Sq. Footage per Person Needed & Fewer Housing Starts

Growth in Housing Starts

1.No Cost Advantagea. Below Industry Profit Ratios b. Bigger N.A. Competitorsc. Strong $ vs. Natural Gas

2.New Normal for Housing

3.N.A. Capacity Additions

4.Higher Future Tax Rates

87% vs. 128% Growth in 2015 EPS

1. Small company in slow-growth commodities industry

2. Analyst Recommendations

A. Sell-Side Bias

B. Inattention

3. Hedge Fund Ownership

A. Four own 25.91% of AXLL’s shares

B. Only one had ownership prior to 12/31/2013

Why Stock Price is Not Declining

1. Alembic Global Avisors – Hassan Ahmed (Independent)

2. Citi Research – PJ Juvekar3. Cohen & Co. – Charles Neivert4. Goldman Sachs – Brian Macquire5. JP Morgan – Jeff Zekauskas6. Macquaire Research – Cooley May7. RBC – Arun Viswanathan8. Sidoti & Company – Chris Butler9. Suntrust Robinson Humphrey – James Sheenan10.UBS – John Roberts11.Wells Fargo – Frank Mitsch

AXLL Analyst Coverage

The Better Investment: DOW

Dow’s Competitive Advantages

1. Economies of Scale2. More International

Production Capacity

3. Wider Range of Products

AXLL

DOW

Median of 11 Comp.

Profit Margin

2.5%

6.9% 6.9%

ROIC 4.4%

9.0% 9.0%

Trailing P/E 42.0 14.3 14.8

Forward P/E 17.8 13.1 12.7

Trailing EV/EBITDA 10.0 8.5 7.3

Forward EV/EBITDA 8.0 7.8 6.3

9/30/2014 2013 2012 2011 2010 2009Amounts for Calculations:

Total Interest Paying Debt 1,429 1,333 448 607 690 739 EBIT 232 318 235 119 113 356 Market Capitalization (mill) 2,528 3,216 1,437 665 818 259 Liquidity and Solvency Ratios:Current Ratio 2.15 2.15 2.39 2.38 2.45 2.51 Quick Ratio 1.40 1.41 1.57 1.35 1.50 1.40 Total Debt Ratio - A 0.53 0.56 0.66 0.70 0.73 0.75 Total Debt Ratio - B 0.25 0.23 0.25 0.37 0.41 0.46Total Debt/Total Equity - A 1.12 1.25 1.98 2.37 2.76 3.08 Total Debt/Total Equity - B 0.52 0.51 0.74 1.24 1.56 1.88Equity Multiplier 2.12 2.25 2.98 3.37 3.76 4.08 Times Interest Earned 3.0 4.1 4.1 1.8 1.6 2.7 Debt / EBITDA 3.64 2.90 1.68 3.92 4.82 2.15 Asset Management Ratios: 1 Input 1 if manufacturer, else 0 or blankInventory Turnover 10.08 9.81 10.07 10.16 9.74 7.08 Days Sales in Inventory 36.2 37.2 36.2 35.9 37.5 51.6 Receivables Turnover 7.8 8.5 10.6 12.6 10.6 9.5 Days Sales in Receivables 46.6 42.9 34.6 29.1 34.6 38.3 Total Asset Turnover 0.80 0.79 1.85 1.96 1.69 1.24

Ratios

Operating Profit Div Days Short %

Ticker ROE ROA ROIC ROIC Margin Margin Yield Short of Float

Company/Symbol TTM TTM TTM 5-year TTM TTM TTM

Albemarle Corp ALB US 25.9% 10.9% 15.7% 22.0% 11.4% 1.1% 11.5 18.3%

Calgon Carbon Corp CCC US 11.9% 7.5% 10.2% 13.0% 8.8% N/A 3.3 1.6%

Huntsman Corp HUN US 19.7% 5.8% 7.0% 7.5% 3.6% 0.5% 3.5 8.5%

Kraton Performance Polymers Inc KRA US 4.4% 3.7% 2.7% 5.4% 2.0% N/A 4.2 3.6%

Lyondellbasell Industries NV LYB US 41.8% 14.1% 27.4% 12.7% 9.8% 2.7% 1.9 2.6%

Methanex Corp MX CN 27.7% 10.1% 18.9% 19.0% 13.3% 1.0% 3.7 N/A

Minerals Technologies Inc. MTX US 10.8% 5.2% 4.0% 12.7% 6.4% 0.2% 5.1 3.0%

Olin Corp OLN US 10.5% 4.5% 6.6% 9.5% 5.1% 0.8% 9.7 11.9%

Sensient Technologies Corp SXT US 7.2% 7.4% 5.0% 14.8% 5.2% 1.0% 6.7 2.6%

The Dow Chemical Co DOW US 15.5% 4.8% 9.0% 9.2% 6.9% 1.5% 2.3 2.0%

Westlake Chemical Corp WLK US 24.8% 14.9% 18.6% 25.5% 15.8% 0.6% 1.2 3.0%

Competitor MEAN 18.2% 8.1% 11.4% 13.8% 8.0% 1.0% 4.8 5.7%

Competitor MEDIAN 15.5% 7.4% 9.0% 12.7% 6.9% 1.0% 3.7 3.0%

Axiall Corp AXLL US 4.3% 2.0% 4.4% 6.3% 5.1% 2.5% 1.5% 4.2 5.7%

Market 7.3% 11.8% 11.0% 9.0%

Comparable Company Profit Ratios Analysis

Profitability Ratios:Gross Profit Margin 11.8% 15.1% 12.7% 9.3% 9.7% 10.6%EBITDA Profit Margin 10.2% 12.6% 9.9% 7.0% 7.6% 5.9%Pretax Profit Margin 3.4% 5.2% 5.3% 1.7% 1.5% 11.3%Net Profit Margin 2.5% 3.5% 3.6% 1.8% 1.5% 6.4%Return on Assets 2.0% 2.8% 6.7% 3.5% 2.5% 8.0%Basic Earnings Power (BEP) 4.0% 5.4% 13.0% 7.2% 6.8% 22.2%Return on Equity 4.3% 6.3% 20.0% 11.8% 9.5% 32.5%DuPont Identity ROE 4.3% 6.3% 20.0% 11.8% 9.5% 32.5%Return on Invested Capital (ROIC) 4.4% 6.5% 15.4% 12.3% 9.8% 0.0%Valuation Ratios:Enterprise Value/EBITDA 8.40 7.73 5.75 5.63 7.06 8.52 P/E Ratio (TTM) 21.4 19.5 11.9 11.5 19.3 2.0 Forward PE 14.2 Book Value Per Share 38.72 38.48 17.34 14.31 13.04 26.41 Price/Book Value Ratio 0.92 1.23 2.38 1.36 1.85 0.66 Price/Sales Ratio 0.55 0.69 0.43 0.21 0.29 0.13 Price/(Cash Flow before Addit.) 7.6 9.9 6.2 3.5 1,131.5 6.3 Price/(Cash Flow after Additions) 26.4 24.8 9.5 5.5 (18.2) 22.9 PEG Ratio 0.19 115.0% "Long-term Predicted Growth Rate" from Analysts

Forecasts $3.01 $1.40Other Statistics (all can be found at quote.com under Company or Insiders: 2015 EPS 2014 EPSInsider Ownership % 6.2%Institutional Ownership % 96.9% (18.30) Recent Quarter Incr./Decr. In Shares (mill)Cash/Share (calculated) $1.61 $2.46 $5.76 $2.60 $3.61 $2.60Short Interest Ratio (days) 4.7Short Interest as % of Float 5.9%Beta 1.43Recent Insider Purchases? 0

Share Repurchases:$ of repurchases 0 0 0 0 0 0Change in Treasury Shares $ 0 0 0 0 0Dividends:Annual Dividends Paid/Share $0.64Dividend Payout 38%Dividend Yield 1.5%5-Year Dividend Growth n/a - first dividend was 6/2012Growth of Income & Sales: TTM 2013 2012 2011 2010Annual Sales Growth -0.7% 40.3% 3.2% 14.4% 41.6%Annual EPS Growth -31.4% -29.6% 104.6% 36.0% -85.5%5-Year Sales Growth 132.9%

Tax Rate CalculationFeder al Tax Rat e 35%Eff ect i ve St at e U. S. Rat e 4%Combi ned U. S. Tax Rat e 39%

Reduct i ons:Manuf act ur i ng Exempt i on 5%St at e and Canadi an NOLs 1%Depl et i on Al l owance 2%Eff ect i ve Tax Rate 31%

Overpriced Acquisition2014 2015 ( Base) 2015 ( Opt i mi st i c)

Chl orovi nyl s Operat i ng Profi t 173, 565$ 299, 149$ 369, 843$

* 55% ( At t r i but abl e t o Acqui si t i on) 95, 461$ 164, 532$ 203, 414$ Add: Depreci at i on 135, 000$ 135, 000$ 135, 000$ EBI TDA 230, 461$ 299, 532$ 338, 414$ *EBI TDA Mul t i pl e ( 6. 3) ( Amount AXLL Shoul d Have Pai d) 1, 451, 904$ 1, 887, 052$ 2, 132, 008$

% of Purchase Pr i ce ( $2. 8B) J ust i fi ed 52% 67% 76%% Overpayment 93% 48% 31%

Synergies

  Original Targets New Targets

Procurement & Logistics $40M $50M

Operating Rate $35M $35M

General & Administrative Reduction $40M $55M

Total $115M $140M

Total Cost to Achieve $55M $55M

Income Tax Rates

2012 2013 2014 YTD

Reported Tax Rates 32.2% 30.5% 16.6%

+ One-Time Adjustment

s*- - 13.4%

Normalized Tax Rate 32.2% 30.5% 30.0%

*Included: Favorable impact of changes in uncertain tax positions & the expiration of a statutory time period

Stock Price Percentage ChangeAXLL DOW Inc. S&P 500

Announcement 7/18/2012

1-day 13.2% 1.9% 0.3%

Announcement to Closing 1/28/2013 89.2% 12.0% 9.3%

Announcement to 4/13/2015 57.0% 57.1% 52.4%

Closing to 4/13/2015 -13.1% 40.2% 39.5%

1. Pro Forma: $0.19 vs. $0.21 (ours) vs. $0.23 (avg.)2. GAAP EPS – lower than expected; more adjustments

needed to get to Pro Forma ($41mm; $.39 EPS adj.)3. Higher tax rate in 4Q confirms our expectations.4. Revenue lower than expected in all segments.5. Operating Income %s – lower in Building Supplies &

Aromatics; higher in Chlorovinyls, but due to adjustments.

6. Drop in oil prices vs. low natural gas prices7. Claimed cost advantages remain very suspect.8. Excess capacity issues confirmed & will continue.9. Expect poor first quarter 2015; after that?

Conclusion: 4Q supports Sell Recommendation!

4Q Earnings Report

Pros: inventory and AR managementCons:1. Low profit ratios (PM, ROE, ROIC, etc.)2. Overpaid for acquisition3. Should have recognized overcapacity but did not.4. March 2014 presentation projected increasing

margins in 2014; they declined dramatically.5. Little explanation of synergies; claimed synergies

vs. declining margins.6. In latest earnings call, management has difficulty

explaining the drop in margins (PVC pricing) and when it will turn around.

7. CEO 64; CFO 59 – Does this impact long-term outlook of management?

Assessment of Management