Slide 1: 4Q 2024 Results
4Q 2024 RESULTS January 30, 2025
Slide 2: Agenda
AGENDA ▪ QUARTERLY AND FULL YEAR RESULTS ▪ OPERATING SEGMENT PERFORMANCE ▪ OUTLOOK ▪ ADVANCING OUR STRATEGIC PRIORITIES 2
Slide 3: 4Q 2024 Performance Overview
4Q 2024 PERFORMANCE OVERVIEW Preserving Operational and Financial Discipline Through $10.4B Challenging Macroeconomic Conditions NET SALES ▪ Net sales of $10.4B; 5th consecutive quarter of YoY volume growth ▪ Operating EBITDA was $1.2B, flat YoY $454MM ▪ Total CapEx was $767MM, delivering free cash
Slide 4: 2024 Full Year Overview
2024 FULL YEAR OVERVIEW Financial Performance External Recognition Navigating Continued Challenges Managed through weather- Advanced our mechanical recycling Achieved net sales of $43B related and supply chain capabilities by acquiring North American disruptions, geopolitical polyethylene recycler C
Slide 5: 4Q 2024 Operating Segment Performance
4Q 2024 OPERATING SEGMENT PERFORMANCE Packaging & Specialty Plastics Ind. Intermediates & Infrastructure Perf. Materials & Coatings 6,0 00 REVENUE ($MM) REVENUE ($MM) REVENUE ($MM) Y-o-Y Y-o-Y 2,4 00 5,5 00 3,2 00 Y-o-Y 2,2 00 5,0 00 Sales ↓ 6% 3,0 00 Sales Flat Sales ↑ 4% Price ↓ 5% Price ↓ 1% Pric
Slide 6: Persistent Softness Across Most Regions and Markets
PERSISTENT SOFTNESS ACROSS MOST REGIONS AND MARKETS Market U.S. & Latin Rest of Vertical Europe China World Select Macroeconomic Indicators by Market Vertical (% of Revenue1) Canada America U.S. & Canada industry PE domestic and export demand grew 4.4% and 11.5% in 2024, Packaging respectively ~30%
Slide 7: 1Q25 Modeling Guidance
1Q25 MODELING GUIDANCE Margin Pressure from Higher Feedstocks and Energy Costs Net Sales ~$10.3B Depreciation & Amortization ~$725MM Full-Year Operational Tax Rate ~25 – 29% Net Interest Expense (Net of Int. Income) ~$175MM Net Income Attrib. to Non-Controlling Int. ~$25MM Average Share Count ~708MM
Slide 8: Proactively Navigating the Prolonged Downturn
PROACTIVELY NAVIGATING THE PROLONGED DOWNTURN Margin Support ▪ Taking additional, targeted actions expected to deliver $1B in annualized cost reductions ▪ Targeted areas include contract labor, purchased services and ~1,500 Dow roles ▪ Expect ~$300MM of benefit in 2025 and full implementation by 202
Slide 9: Unlocking Up to $3B in Cash from Select Infrastructure Assets
UNLOCKING UP TO $3B IN CASH FROM SELECT INFRASTRUCTURE ASSETS Newly Formed Infrastructure-Focused Company Growth Opportunities Through a New Business Model ▪ World-class assets with best-in- class safety and reliability ▪ Dedicated management team, focused on operational excellence ▪ Support >70 lon
Slide 10: 2025 Strategic Priorities
2025 STRATEGIC PRIORITIES ▪ Fully implement $1B in annualized targeted cost reductions; expect ~$300MM in 2025 and full benefit by 2026 ▪ Reduce 2025 CapEx by $300 to $500MM compared to prior target, Preserve a Strong in response to current market conditions and will remain at these Financial Founda
Slide 11: Seek Together
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Slide 12: FY25 Modeling Considerations
FY25 MODELING CONSIDERATIONS Operating EBIT Drivers Equity Earnings ~$25 to ~$50MM lower YoY Pension and Defined ~$90MM higher YoY Contribution Impact Corporate Op. EBIT of ~$(320)MM and Op. EBITDA of ~$(280)MM Cash Flow Considerations Turnaround Dividends from Equity ~Flat YoY ~$300 to ~$325MM Expe
Slide 13: Principal Joint Venture Detail
PRINCIPAL JOINT VENTURE DETAIL Dow’s Proportional Share of Principal JV Financial Results Drivers of Changes in 4Q 2024 3Q 2024 4Q 2023 Equity Earnings Kuwait Thai Kuwait Thai Kuwait Thai ▪ Sadara: YoY lower volumes in most $ millions (unaudited) Sadara JVs JVs Sadara JVs JVs Sadara JVs JVs product
Slide 14: Share Issuance and Repurchase Activity
SHARE ISSUANCE AND REPURCHASE ACTIVITY Share Issuances & Repurchases Comments ▪ Stock Incentive Plans (LTI): Includes stock options, restricted stock units, Shares in millions 4Q24 3Q24 4Q23 FY24 FY23 performance stock units, stock Stock Incentive Plans (LTI) - 0.1 0.3 3.5 4.3 appreciation rights an
Slide 15: Appendix
APPENDIX
Slide 16: General Comments
GENERAL COMMENTS General Comments Unless otherwise specified, all financial measures in this presentation, where applicable, exclude significant items. Trademarks The Dow Diamond, logo and all products, unless otherwise noted, denoted with , ℠ or ® are trademarks, service marks or registered tradema
Slide 17: Safe Harbor
SAFE HARBOR Cautionary Statement about Forward-Looking Statements Certain statements in this presentation are “forward-looking statements” within the meaning of the federal securities laws, including Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Ac
Slide 18: Non-GAAP Financial Measures & Definitions
NON-GAAP FINANCIAL MEASURES & DEFINITIONS Non-GAAP Financial Measures This presentation includes information that does not conform to GAAP and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company's segment