Slide 1: Dow FY20 Benchmarking Update
Dow FY20 Benchmarking Update
Slide 2: Points of Distinction Enable Continued Outperformance
POINTS OF DISTINCTION ENABLE CONTINUED OUTPERFORMANCE Leading Cash Flow and Differentiated Portfolio with Attractive End Market Growth Shareholder Remuneration Yield Leading Positions Packaging ~1.5x GDP Consumer ~1.5x GDP • ~$9B in Free Cash Flow1 generated #1 Siloxanes #1 Solvents #1 Acrylic Binde
Slide 3: Benchmarking Peers
BENCHMARKING PEERS Benchmarking conducted against segment level peers if sufficient information disclosed, otherwise corporate level 3
Slide 4: Total Dow Benchmarking: Summary of Observations
TOTAL DOW BENCHMARKING: SUMMARY OF OBSERVATIONS Benchmarking: Strengths & Gaps FY20 YoY Adj. Op. EBITDA growth trailed the peer median as resilient demand for packaging applications and recovery in durable good end markets was more than offset by upstream pricing pressures in siloxanes and acrylic
Slide 5: Total Dow Benchmarking Snapshot
TOTAL DOW BENCHMARKING SNAPSHOT (1,2,3,4) FY20 UPDATE & FY19 Adj. Op. EBITDA Adj. Op. EBITDA SG&A + R&D CORE STRENGTHS Growth Margin Cash Flow Conversion (as a % of Sales) FOCUS AREAS FY20 vs. FY19 vs. • Hallmark safety FY19 25% FY20 FY19 150% FY20 FY19 25% FY20 FY19 • Maintain focus on cash FY18 pe
Slide 6: Top-Quartile Cash, Remuneration Yield and Debt Reduction
TOP-QUARTILE CASH, REMUNERATION YIELD AND DEBT REDUCTION Operating Cash Flow (2019-2020) Average Annual Free Cash Flow (2019-2020) as % of Operating EBITDA as % of 2020 Market Cap 93% Median 11% Excl. Dow ~84% Median Excl. Dow ~6% 5% 4% Peer 1 DOW Peer 2 Peer 3 Peer 4 Peer 5 Peer 6 Peer 7 DOW Peer 1
Slide 7: Culture of Benchmarking: Summary of Observations
CULTURE OF BENCHMARKING: SUMMARY OF OBSERVATIONS Segment FY20 Benchmarking: Strengths & Gaps FY20 YoY Adj. Op. EBITDA growth tracked the peer median as peers with more exposure to naphtha rebounded from a lower 2019 performance from cost pressures FY20 Adj. Op. EBITDA margin more resilient than
Slide 8: Packaging & Specialty Plastics Benchmarking Snapshot
PACKAGING & SPECIALTY PLASTICS BENCHMARKING SNAPSHOT (1,2,3,4,5,6) FY20 UPDATE & FY19 Adj. Op. EBITDA Adj. Op. EBITDA SG&A + R&D CORE STRENGTHS Growth(7) Margin Free Cash Conversion (as a % of Sales) FOCUS AREAS FY20 vs. FY19 vs. • World-class packaging FY19 25% FY20 FY19 FY20 FY19 FY20 FY19 • Maint
Slide 9: Return on Polyolefin Capacity
RETURN ON POLYOLEFIN CAPACITY Op. EBITDA Per Pound Dow’s P&SP Returns Remain Polyolefins Capacity1 (cpp) Ahead of Peers 19 • Full feedstock-to-polymer integration continues 16 to deliver enhanced value 14 • Differentiated portfolio provides margin resiliency 10 • Functional Polymers portfolio provid
Slide 10: Industrial Intermediates & Infrastructure Benchmarking Snapshot
INDUSTRIAL INTERMEDIATES & INFRASTRUCTURE BENCHMARKING SNAPSHOT (1,2,3,4,5) FY20 UPDATE & FY19 Adj. Op. EBITDA Adj. Op. EBITDA SG&A + R&D CORE STRENGTHS Growth Margin Free Cash Conversion (as a % of Sales) FOCUS AREAS FY20 vs. FY19 vs. • Top global producer of FY19 FY18 FY20 FY19 FY20 FY19 FY20 FY19
Slide 11: Performance Materials & Coatings Benchmarking Snapshot
PERFORMANCE MATERIALS & COATINGS BENCHMARKING SNAPSHOT (1,2,3,4) FY20 UPDATE & FY19 Adj. Op. EBITDA Adj. Op. EBITDA SG&A + R&D CORE STRENGTHS Growth Margin Free Cash Conversion (as a % of Sales) FOCUS AREAS FY20 vs. FY19 vs. • World-class 10% 35% FY20 FY19 80% FY20 FY19 20% FY20 FY19 • Maintain focu
Slide 12: General Comments
GENERAL COMMENTS Background On April 1, 2019, DowDuPont completed the separation of its materials science business and Dow Inc. became the direct parent company of TDCC, owning all of the outstanding common shares of TDCC. For filings related to the period commencing April 1, 2019 and thereafter, TD
Slide 13: Safe Harbor
SAFE HARBOR Cautionary Statement about Forward-Looking Statements This presentation contains “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 Act of 1934, as ame
Slide 14: Non-GAAP & Definitions
NON-GAAP & DEFINITIONS Non-GAAP Financial Measures This presentation includes information that does not conform to U.S. GAAP and are considered non-GAAP measures. Management uses these measures internally for planning, forecasting and evaluating the performance of the Company's segments, including a