The Dow Chemical Company

The Dow Chemical — Citi Basic Materials Conference 2012

17 slides from The Dow Chemical's conference presentation, Nov 27, 2012

  1. Slide 1: Citi Basic Materials Conference

    Citi Basic Materials Conference The Dow Chemical Company Howard Ungerleider Executive Vice President November 27, 2012 January 4, 2012

  2. Slide 2: SEC Disclosure Rules

    SEC Disclosure Rules Some of our comments today include statements about our expectations for the future. Those expectations involve risks and uncertainties. Dow cannot guarantee the accuracy of any forecasts or estimates, and we do not plan to update any forward-looking statements if our expectatio

  3. Slide 3: Agenda

    Agenda  3Q 2012 Overview  Dow’s Growth Path  Executive Committee Priorities 3

  4. Slide 4: Dow Delivers EPS of $0.42 Per Share

    Dow Delivers EPS of $0.42 Per Share; Sequential Volume Gains, Strong Operating Rate Mitigate Price Declines  Adj. Earnings per share of $0.42  Sales of $13.6B, adjusted sales down 7% – Broad-based price declines led by Europe, where adverse currency totaled >$520MM – Adjusted volume up 2%; feedsto

  5. Slide 5: Agenda

    Agenda  3Q 2012 Overview  Dow’s Growth Path − $2.5 Billion of Interventions in Motion − Prudent Approach to Innovation & Growth − New, Streamlined Operating Model − Tailoring our Footprint and Growth Plan  Executive Committee Priorities 5

  6. Slide 6: Dow's Earnings Growth Trajectory

    Dow’s Earnings Growth Trajectory Margin Expansion / Organic Growth Equity Earnings Growth Synergies / Innovation Addressing the gap $10B $8.4B $7.5B $5.5B 2009 2010 2011 Near Term 6

  7. Slide 7: Accelerating Cost and Cash Interventions

    Accelerating Cost and Cash Interventions Total Levers: $2.5B Target Savings ($MM) $200MM reduction in $1,000 Cost Interventions (Run Rate) $1B growth spend Cash Interventions (Cumulative) $900 Decrease $700MM CapEx CapEx & Growth reduction in 2013* $800 Spending $700 $100MM CapEx reduction in 2012*

  8. Slide 8: Cost and Cash Interventions: 2013 Impact

    Cost and Cash Interventions: 2013 Impact  1Q12 Restructuring savings $100MM Cost  4Q12 Restructuring savings $200MM EBITDA  Growth spending reduction $100MM Impact Savings  Discretionary spending reduction $100MM $500MM Cash  Adjust CapEx investment to reflect near-term market CapEx  Prioritiz

  9. Slide 9: Prioritizing Growth Investments

    Prioritizing Growth Investments U.S. Gulf Coast  On track to restart SCO cracker YE2012; $150MM EBITDA benefit in 2013  PDH investment advancing; on track for 2015 start-up  Investments will enhance margins for downstream businesses  Expected to deliver $2B in additional EBITDA in 2017 Emerging

  10. Slide 10: Prioritizing Growth Investments

    Prioritizing Growth Investments Electronic Materials  Bolt-on acquisition of Lightscape MaterialsTM broadens Dow’s footprint  Dow’s LED phosphor formulations deliver state-of-the art performance; enable Dow to capture growth in LED market Performance Plastics  Dow Elastomers capitalizing on incre

  11. Slide 11: An Integrated Portfolio Designed for Growth

    An Integrated Portfolio Designed for Growth Earnings Growth  Highly integrated  Low-cost feedstock  Technology-rich businesses aligned with growth markets Key Markets Advantaged feedstocks  Packaging  Water to support and advance  Electronics  Coatings downstream growth  Hygiene &  Ag & Nut

  12. Slide 12: Electronic and Functional Materials

    Electronic and Functional Materials Advanced Technology, Distinct Chemistries and Growth Markets  Portfolio of advanced technologies enable next-generation smart devices  Performance enhancing solutions that enable customers to differentiate products in pharma, food, water, energy and personal car

  13. Slide 13: Coatings and Infrastructure Solutions

    Coatings and Infrastructure Solutions Broad Range of Chemistries, Extensive Footprint and Technology Expertise  Largest integrated coating materials portfolio for architectural and industrial paint coatings formulators worldwide  Complete portfolio of advanced water treatment technologies with lea

  14. Slide 14: Agenda

    Agenda  3Q 2012 Overview  Dow’s Growth Path  Executive Committee Priorities 14

  15. Slide 15: Executive Committee Actions to Deliver Growth

    Executive Committee Actions to Deliver Growth  Accelerate actions to drive down costs, increase cash  Prioritize growth investments  Exercise strict discipline through new operating model  Maintain priority uses of cash – deleveraging, shareholder remuneration and targeted organic growth 15

  16. Slide 16: Dow Investor Forum 2012

    Dow Investor Forum 2012 New York, NY • December 3, 2012  Updates on key near-term milestones  Insights into EBITDA, ROC and cash targets  For more information: ir@dow.com 16

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